Korea's private equity industry strained by political pressure, public criticism

Korea's private equity industry is coming under heightened scrutiny amid growing public and political backlash, with firms increasingly cast as corporate raiders following a series of high-profile incidents, industry officials said Thursday. MBK Partners, one of Asia's largest private equity firms, has come under fire this year for the financial collapse of retail chain Homeplus, which filed for court receivership. Critics say MBK worsened Homeplus' financial troubles by selling off profitable stores and real estate to repay debts and recoup investments. Its decision to sell short-term debts just before filing for court receivership was also criticized for distressing investors. Another notable controversy involves Bang Si-hyuk, the founder of HYBE, who is under police investigation. Ahead of the company's initial public offering in 2020, Bang reportedly signed secret profit-sharing agreements with private equity funds, generating sizable profits. The backlash has been particularly fierce, shaped by years of accumulated distrust rooted in Korea's history with foreign private equity firmsWeiter zum vollständigen Artikel bei Korea Times Weiter zum vollständigen Artikel bei Korea Times