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Korea's market watchdog says intervention in private equity industry inevitable

Published: 20 Jan. 2026, 16:14 Updated: 20 Jan. 2026, 19:36

Financial Supervisory Service (FSS) Gov. Lee Chan-jin speaks during a meeting with CEOs of private equity funds at the FSS headquarters in Yeouido, western Seoul, on Jan. 10. [NEWS1]

The head of Korea's financial market watchdog on Tuesday said authorities would respond sternly to the business practices of private equity funds that undermined fairness and credibility.

"The market order has been disrupted recently by the illegal and unfair behaviors of some private equity firms, with infringements on investor interests greatly undermining social confidence in the industry," Lee Chan-jin, governor of the Financial Supervisory Service, said during a meeting with local private equity firms.

Lee said public intervention in the market was inevitable to restore the industry after recent instances of illegal and unfair practices. He vowed to sternly respond to such practices, without specifying any examples.

The meeting with 12 local private equity firms was held as MBK Partners, a pioneer in North Asian markets with more than $32 billion in capital, is being investigated by Korean prosecutors and financial authorities over its sale of troubled supermarket chain Homeplus.

MBK Partners was not one of the 12 attendees at the meeting with Lee.

Reuters