Prosecutors slap travel ban on MBK Partners chairman over Homeplus scandal

Home > National > Social Affairs

Prosecutors slap travel ban on MBK Partners chairman over Homeplus scandal

Published: 19 May. 2025, 21:26 Updated: 21 May. 2025, 14:15

Audio report: written by reporters, read by AI

Michael ByungJu Kim, chairman of MBK Partners [MBK]

Prosecutors investigating the so-called Homeplus scandal have imposed a travel ban on Michael ByungJu Kim, chairman of MBK Partners and the alleged central figure in the case.

According to legal sources on Monday, the Seoul Central District Prosecutors’ Office’s Anti-Corruption Investigation Division recently requested the Ministry of Justice to bar Kim, a U.S. citizen, from leaving Korea.

Under the Immigration Control Act, the justice minister may restrict the departure of a foreign national if deemed necessary for a criminal investigation.

Given that Kim had been staying overseas for an extended period, the move is seen as a precautionary measure to prevent any disruption to the investigation should he attempt to leave the country again.

On Saturday, prosecutors executed a search and seizure warrant on Kim as he arrived at Incheon International Airport from London. Investigators reportedly secured his mobile phone and other digital evidence.

Homeplus' labor union members hold a protest outside the MBK office in central Seoul on May 12. [YONHAP]

The prosecution suspects that executives at Homeplus and MBK Partners were aware in advance of a pending credit rating downgrade and a planned court receivership application but failed to disclose this information before issuing short-term bonds, potentially defrauding investors.

Investigators believe the companies may have known of the downgrade before the first official notice on Feb. 25, raising suspicions that they issued the bonds in an attempt to pass losses onto investors.

The investigation has widened since April 28, when prosecutors raided the residences of Homeplus co-CEOs Joh Ju-yeon and Kim Gwang-il as well as the MBK Partners headquarters.

Prosecutors are expected to summon the three executives and other top management figures for questioning as suspects once the seized materials are analyzed.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY JEONG JAE-HONG [[email protected]]