Kim Byung-joo, chairman of MBK Partners, will provide a guarantee for a loan worth 60 billion won. This is a follow-up measure after donating hundreds of millions of won to Homeplus last month.
According to the investment banking (IB) industry on the 10th, the domestic private equity fund (PEF) management firm Curious Partners is pursuing a Debtor In Possession (DIP) financing loan for Homeplus. The firm has currently submitted an application for loan approval to the court, and the loan will proceed upon the court's decision. The loan amount is 60 billion won, with an interest rate of 10% per year and a maturity of three years.
Chairman Kim has decided to guarantee the payment of 60 billion won in a personal capacity. If Homeplus fails to repay, Chairman Kim will personally repay the amount.
Chairman Kim is reported to have donated hundreds of millions of won to Homeplus last month, separate from the loan guarantee. The specific amount of the grants has not been disclosed.
Both the grants made by Chairman Kim and the 60 billion won guarantee will be used to settle payments for small business transactions. However, political circles point out that the scale of the contributions is woefully insufficient. Representative Min Byeong-deok of the Democratic Party, a member of the Strategy and Finance Committee, pressured Chairman Kim by saying, "You should contribute 2 trillion won to compensate trading creditors and individual corporations investors."
Chairman Kim is also reported to be considering additional grants.