Chairman nominee Lee Eok-won noted that he will seek improvements to the system related to private equity funds (PEFs). This comes as calls for regulation on PEFs have increased due to recent issues with Homeplus.
According to the written response submitted by the nominee to the National Assembly on the 31st, he expressed the intention to improve the system regarding PEF regulation, stating that "some behaviors of PEFs revealed in recent issues do not align with market and public expectations."
He acknowledged that while the methods employed by PEF management companies to sell assets of target corporations or secure management rights through leveraged buyouts are considered "a form of investment strategy commonly practiced in the global PEF market," he criticized the recent cases.
This remark is interpreted as targeting MBK Partners, which acquired Homeplus through a leveraged buyout (LBO). Financial authorities have recently begun a re-investigation to review the funding process for MBK Partners' acquisition and have dispatched a letter of inspection, which can be seen as the start of the sanctions process.
The nominee explained regarding the Homeplus incident that "it is necessary to improve the excessive short-term profit-driven corporate governance behaviors of PEFs to promote the healthy development of the PEF market" and that he will seek improvements to the system to review the merits and demerits of private equity funds and restore market trust.
Regarding the investigation by financial authorities and prosecutors related to MBK Partners and Homeplus, he emphasized, "If there is anything the financial authorities (Financial Services Commission) can cooperate with during the investigation process, we will actively cooperate and will closely monitor the ongoing inspections and audits."