MBK Partners said on the 24th that it would donate up to 200 billion won to Homeplus by using part of MBK Partners' future operating income, and that it would establish the "MBK Partners Social Responsibility Committee," involving outside experts with experience in public policy and on the industrial front lines, so that all future investment activities are carried out on the values of mutual growth and responsibility.
On the same day, MBK issued a public apology containing these points, saying, As the largest shareholder, we sincerely apologize to the public for causing great concern and disappointment as Homeplus entered rehabilitation proceedings due to insufficient judgment and management oversight.
It added, We deeply reflect on failing to fulfill our social responsibility, and Homeplus' corporate rehabilitation is not a mere financial failure but has made us keenly realize how gravely we failed to fully carry out our heavy duty as the largest shareholder of a company closely tied to people's daily lives.
MBK Partners earlier decided to cancel 2.5 trillion won worth of common shares without consideration and has provided a total of 300 billion won in financial support to Homeplus, including Chairman Kim Byung-ju of MBK Partners' personal contribution and joint guarantee. It also said it would do its utmost to ensure that the National Pension Service can recover the principal on the redeemable convertible preferred shares (RCPS) it holds.
MBK Partners said, Homeplus is the foundation of life for countless workers, a base for partner companies and local communities, and an important pillar of the livelihood economy, adding, We will do our best to protect the livelihoods of Homeplus' 20,000 executives and employees and 80,000 partner company employees.
Homeplus, Korea's No. 2 big-box retailer, entered court receivership in Mar. It received court approval in Jun. from the rehabilitation court for a prepackaged merger and acquisition (M&A) before plan confirmation and has been seeking a potential buyer. Once rehabilitation begins, a debtor's assets are frozen and creditors are barred from exercising their rights. Normal business continues, but a court-appointed administrator operates under the court's supervision and manages the property. MBK Partners acquired management control of Homeplus in 2015.