MBK Partners Executives Face Arrest Warrants in South Korea

South Korean prosecutors have sought arrest warrants for MBK Partners chairman Michael Byung-ju Kim and three other executives over alleged misconduct at supermarket chain Homeplus.

Prosecutors allege the executives knew a credit-rating downgrade was likely but still pushed Homeplus to issue asset-backed bonds in February last year before the retailer entered court receivership, causing investor losses.

Warrants were requested for Homeplus CEO Kim Kwang-il, MBK vice president Kim Jeong-hwan and CFO Lee Sung-jin over suspected Capital Markets Act violations and breaches of economic crime laws. MBK Partners has denied wrongdoing.