Billionaire Private Equity Tycoon Becomes Mired in Korea Probe

Michael ByungJu Kim, one of Asia’s most prominent private equity tycoons, built his MBK Partners Ltd. into a regional powerhouse with marquee deals and tens of billions in assets under management.

Now, a controversial bet on Homeplus, once the nation’s second-largest supermarket chain, has returned to haunt him.

Prosecutors are probing whether Homeplus — with MBKP’s knowledge — issued short-term debt despite being aware that the retailer was veering toward a credit downgrade. MBKP has denied any wrongdoing.

MBKP’s share of the Homeplus acquisition was about 600 billion won ($435 million). The value of the investment has been written down significantly, a ...