This article was published on Nov. 12, 2025, at 3:51 p.m. on ChosunBiz MoneyMove (MM).
The Ministry of Employment and Labor (MOEL) is weighing whether to sanction private equity firm JKL Partners over the suspected overwork death of a worker in their 20s at the London Bagel Museum. JKL Partners acquired control of the London Bagel Museum through a blind fund that received investment from an industrial accident insurance fund managed under MOEL.
On the 12th, sources in the investment banking industry said the asset management team in MOEL's Employment Policy Office, which manages the industrial accident fund, has internally reviewed whether to sanction JKL Partners. However, because the deceased employee's bereaved family reached an agreement with the company and withdrew the industrial accident claim, a final decision on penalties for JKL Partners has been postponed until after a labor inspection.
MOEL reportedly learned of the fatal incident through media reports rather than receiving a direct report from JKL Partners. An industry official said, "I understand that labor issues at portfolio corporations are not matters that an outsourced manager is required to report to investors." Nevertheless, MOEL is said to have internally examined various response options given that the industrial accident fund is public money with a public mission.
MOEL discussed applying stricter environmental, social and governance (ESG) criteria when selecting fund managers. As a last resort, it also conducted a legal review on whether it could cancel the fund investment agreement with JKL Partners. Kim Young-hoon, Minister of Employment and Labor, said at a parliamentary audit last month that the government would respond strictly and with no tolerance regarding the London Bagel Museum incident.
Some observers expected MOEL to withdraw its fund investment depending on its decision, but that now seems unlikely. Domestic pension funds and mutual aid associations have no precedent for recovering investments from private equity firms on grounds of social responsibility, and it is also believed the fact that the bereaved family and the company reached an agreement was taken into account.
The fact that the blind fund used for this investment was a joint investment added to the difficulty. When JKL Partners formed the fund, it received money not only from the industrial accident fund but also from the National Pension Service, Korea Development Bank, and the teachers' mutual aid association, among others. With multiple institutions that manage public funds participating as investors, it is structurally difficult for the industrial accident fund to withdraw on its own.
An industry official said, "The Government Employees Pension Service also considered withdrawing its investment from MBK Partners in the past, but it was not actually carried out," adding, "There is no precedent for investment withdrawal, and since the bereaved family has already withdrawn the industrial accident claim, even if sanctions are imposed, they are more likely to take forms other than withdrawing investment."
For now, it appears JKL Partners has avoided the worst outcome. However, the results of the labor inspection could be a variable. MOEL began a planned inspection of London Bagel's headquarters and its Incheon branch on Oct. 29, and after uncovering some indications of legal violations, expanded the scope of the inspection to all affiliated companies. MOEL said it could further consider sanctions if illegal elements are found.