▲ Kim Byung-ju, chairman of private equity firm MBK Partners, attends an audit by the National Assembly's National Policy Committee, in this Oct. 14, 2025, file photo. (Yonhap)

(LEAD) MBK Partners-prosecution

(LEAD) Court to hold arrest warrant hearing for MBK Partners chairman next week over Homeplus management

(ATTN: UPDATES with court's announcement in first 3 paras; CHANGES headline; ADDS byline)

By Yi Wonju and Chae Yun-hwan

SEOUL, Jan. 8 (Yonhap) -- A court said Thursday it will hold a hearing next week to decide whether to issue arrest warrants for the chairman of private equity firm MBK Partners, Kim Byung-ju, and three other senior executives over the management of troubled retailer Homeplus Co.

The Seoul Central District Court said the hearing will take place next Tuesday after prosecutors sought arrest warrants for Kim and three other senior executives, including a co-chief executive of Homeplus, on charges of fraud and violation of the Capital Markets Act.

A decision on their potential arrest could come out as early as later that day.

MBK Partners acquired a 100 percent stake in Homeplus in 2015 from British retailer Tesco Plc for 7.2 trillion won (US$4.9 billion). The retailer, however, became financially strapped due to a slump in the discount store industry and eventually entered court-led rehabilitation proceedings in March last year.

MBK Partners has been accused of allegedly selling a large-scale short-term bond of Homeplus around the time of the credit downgrade for the retailer.

On Feb. 28 last year, Korea Ratings downgraded its credit rating of Homeplus to "A3 minus" from "A3." Four days later, Homeplus asked a court to grant rehabilitation proceedings.

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