Chairperson Yun Han-hong is banging the gavel during a question-and-answer session on the corporate rehabilitation process of Homeplus at the National Assembly on the 18th. /Courtesy of National Assembly Press Corps
Chairperson Yun Han-hong is banging the gavel during a question-and-answer session on the corporate rehabilitation process of Homeplus at the National Assembly on the 18th. /Courtesy of National Assembly Press Corps

MBK Partners Chairman Kim Byung-joo, the majority shareholder of Homeplus, faces scrutiny from the National Assembly over the need to contribute more than 2 trillion won of personal assets.

According to the National Assembly on the 18th, members of the National Assembly's Political Affairs Committee pointed out during an urgent inquiry about 'Homeplus and MBK Partners' held that morning at the National Assembly in Yeouido, Seoul, that 'the Homeplus crisis is very serious' and 'outstanding payments to small merchants and micro-businesses must not cease.'

Democratic Party lawmaker Kang Hoon-sik noted, 'The National Pension Fund, which is the retirement fund for the public, could incur investment losses of hundreds of billions, and if the short-term bond credit rating drops to A3-, funding itself would become difficult, ruining the market.'

Lawmaker Kang continued, 'Considering the losses faced by individual investors, workers who have lost their jobs, and small business owners, personal asset contributions need to be at least 1.5 trillion to 2 trillion won, otherwise it will be difficult to bear public outrage.'

Political Affairs Committee Chairman Yoon Han-hong said, 'The moral hazard of private equity funds is serious,' and added, 'How can we handle companies that are extremely important to the nation, and significantly impact citizens, while withdrawing investment funds and neglecting the companies?'

Additionally, some lawmakers pressed Kim Kwang-il, Vice Chairman of MBK Partners and co-CEO of Homeplus, during the inquiry, questioning, 'Are you aware that Chairman Kim is the wealthiest person in our country?' and urging, 'Call to confirm.'

Meanwhile, Vice Chairman Kim stated, 'It is true that Chairman Kim has decided to make a personal asset contribution,' but added, 'the financial support is aimed at paying outstanding amounts to small business owners who operate within Homeplus, and the scale and timing are currently under discussion.'