MBK Partners, a Northeast Asia-focused private equity firm, has announced plans to sell Homeplus, its embattled South Korean supermarket chain, in a bid to avoid the retailer’s liquidation, according to a report by Reuters.
MBK initiated a court-led restructuring process for Homeplus in March following a prolonged downturn stemming from the Covid-19 pandemic and intensifying competition from online grocery platforms. Once South Korea’s second-largest grocery chain, Homeplus has struggled to recover amid shifting consumer habits and mounting debt pressures.
A recent court-commissioned valuation revealed that the liquidation value of Homeplus exceeds its going concern value, prompting MBK to move ahead with a sale process. Under the proposed plan, Homeplus will issue new shares to be sold to a prospective buyer, while MBK will cancel its existing equity stake – valued at approximately KRW2.5tn ($1.83bn).
MBK acquired Homeplus from Tesco in 2015 for £4bn, marking one of the largest private equity deals in the region at the time. However, the investment has faced persistent headwinds, culminating in this strategic pivot.
Compounding the situation, MBK is under investigation by South Korean authorities over allegations it greenlit a debt issuance by Homeplus in 2025 despite prior knowledge of a credit downgrade. MBK has denied any wrongdoing.
In connection with the probe, prosecutors have imposed a foreign travel ban on MBK founder and chairman Kim Byung-ju.
