This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:48 p.m. on Sept. 28, 2025.
Private equity fund (PEF) manager MBK Partners pledged funding for Homeplus, which is undergoing corporate rehabilitation, but critics say the plan lacks specifics such as a clear execution timeline and amount, raising questions that it may be a mere attempt to dodge a parliamentary audit.
According to the investment banking (IB) industry on the 28th, on the 24th MBK Partners issued an official apology, saying, "As the largest shareholder of corporations closely tied to the daily lives of the public, we have come to realize acutely that we failed to fully carry out our heavy responsibility," and added, "We will donate up to 200 billion won to Homeplus by using a portion of MBK Partners' future operating revenue."
It also stressed that "including Chairman Kim Byung-ju's personal funds grants, the 300 billion won already provided amounts to the largest-ever capital support injected by a controlling shareholder among corporate rehabilitation cases."
Industry voices say the actual implementation needs to be watched, given past support cases. Breaking down the 300 billion won MBK Partners previously put into Homeplus: Chairman Kim Byung-ju's 40 billion won in personal funds grants, 60 billion won in joint guarantees for DIP (Debtor-in-Possession) financing, and 200 billion won in MBK Partners' joint guarantees for Homeplus loans.
MBK Partners explains that, in effect, Kim contributed personal funds amounting to 100 billion won. Regarding the DIP financing, it argues that because Kim waived his right of indemnity against Homeplus, he took on the loan responsibility. A right of indemnity allows a co-debtor or guarantor who repays a debt on behalf of the debtor to claim reimbursement from the original debtor who was obligated to pay.
However, industry officials say this interpretation favors MBK Partners. An industry source said, "Homeplus is the party to the DIP financing, so for the waiver of the right of indemnity to have practical effect, Homeplus must fail to repay the amount," and explained, "Only if Homeplus fails to rehabilitate, enters bankruptcy, and has no funds even to repay public-interest claims would Chairman Kim end up paying instead."
DIP financing is a form of rescue funding that lends to corporations once rehabilitation proceedings begin. In the United States, where DIP financing originated, an incentive known as super-priority is provided. In Korea, the Debtor Rehabilitation and Bankruptcy Act stipulates, "Public-interest claims concerning funds borrowed with court approval to continue the debtor's business shall be repaid in priority to other public-interest claims." This means repayment of DIP loan principal precedes other public-interest claims such as payments to partner companies or wages for workers.
Accordingly, the prevailing view in the industry is that, of the existing 300 billion won, only 40 billion won was cash directly borne by MBK Partners. Perhaps mindful of such controversy, MBK Partners said the entire 200 billion won in this support plan would be provided in cash.
However, details of the announcement contain ambiguities. The phrase "up to 200 billion won" leaves room for the actual support amount to be lower, and the expression "use future operating revenue," rather than immediately using MBK Partners' existing resources, makes the timing of disbursement unclear. This is why some say it is a hastily assembled plan to block Chairman Kim from appearing at the parliamentary audit.
In response, MBK Partners said, "Unlike typical corporations, a private equity manager's operating revenue is directly tied to investments and portfolio companies, so it cannot be considered fixed each month," and explained, "Nevertheless, once a certain amount is accumulated, that amount will be donated to Homeplus."
It countered, "Once this support plan is executed, from an acquirer's perspective Homeplus effectively has 200 billion won in funds, which in effect reduces the acquisition price by that amount," adding, "This can lighten the burden on a new acquirer, enable a pre-approval merger and acquisition, and help normalize Homeplus."