The Financial Supervisory Service is gathering the chief executive officers (CEOs) of major domestic private equity fund (PEF) management companies for a discussion on the separation of banking and commerce. This comes two weeks after Chairman Lee Bok-hyun of the Financial Supervisory Service expressed his position on MBK Partners' acquisition of Korea Zinc.
On the 11th, the Financial Supervisory Service announced that it will hold a closed meeting on the 12th with the CEOs of 12 major PEF managers, including MBK Partners and Hahn & Company, under the chairmanship of the Executive Vice President of the Capital Market.
The meeting will discuss the issue of the separation of banking and commerce, which Chairman Lee mentioned last month. On the 28th of last month, he noted, "MBK Partners' attempt to acquire management rights of Korea Zinc is a topic that raises questions" and added, "I am now contemplating a new policy issue that raises concerns about the side effects of 'financial capital dominating industrial capital.'"
He continued, "Certain industries need to be viewed over a long period of 20 to 30 years, but they have a structure that requires them to refine their business within 5 to 10 years," and said, "When financial capital dominates industrial capital, we need to consider the potential impairment of shareholder value from a mid- to long-term perspective."
Kim Kwang-il, vice chairman of MBK Partners, indirectly rebutted this. At a press gathering related to the acquisition of Korea Zinc held the previous day, he stated, "I think it's not appropriate to say that we (PEF managers) do not have a 20-year vision," and added, "I believe it is only natural that we must explain our long-term vision and management strategy to shareholders."