Korea Financial Supervisory Service (FSS) to Investigate MBK Partners
SEOUL, South Korea, March 21, 2025–(BUSINESS WIRE)–Korea Zinc Co., Ltd. (KRX:010130) announced that Korean tax and financial regulatory authorities are gearing up to investigate MBK Partners for possible punitive measures, while Korean media have been raising strong criticism over the adverse effects of private equity funds, including MBK Partners which has operated Homeplus, one of the nation’s largest supermarket chains, since 2015.
MBK barred from hostile takeover in fund operations: NPS
Korea’s National Pension Service (NPS) clarified that its recent fund management agreement with private equity powerhouse MBK Partners was made under the condition that the firm would not engage in hostile takeovers, the Korea Herald reported.
The statement, released Monday evening, comes amid mounting concerns over MBK’s investment practices.
“In July 2024, NPS selected four out of 15 firms through its domestic private equity fund management selection process, with MBK Partners among them,” the NPS said. “In February, we finalized our agreement with MBK, explicitly including a condition prohibiting participation in hostile takeovers.”
According to the statement, the final signing with MBK took longer than usual, as such agreements typically conclude within two to three months of the final selection.
“With MBK, however, concerns persisted that some of its investment strategies, including the controversial attempt at a hostile takeover of Korea Zinc, did not align with NPS’ management principles. In response, we conducted a case review and sought legal counsel on hostile merger and acquisition investments,” NPS said.
The pension fund added that it is considering applying similar conditions to future private equity fund agreements.
Earlier, the Korea JoongAng Daily reported that criticism is mounting over the role of PEFs in the crisis surrounding Homeplus, Korea’s second-largest retail chain with 126 stores nationwide, because PEFs are prioritizing short-term gains rather than focusing on sustainable management.
Against this backdrop, the National Assembly’s Political Affairs Committee summoned executives from MBK Partners for questioning on March 18. However, MBK Chairman Michael Byungju Kim (MBK), a 61-year old Korean-American billionaire, was absent, citing an overseas business trip. Lawmakers from ruling and opposition parties strongly criticized MBK Partners for evading responsibility while it has branded itself as a ‘domestic’ private equity fund. Some even accused Kim, founder of MBK Partners, of being ‘arrogant and irresponsible.’