This article was posted on the ChosunBiz MoneyMove (MM) site at 5:26 p.m. on Oct. 1, 2025.
Meritz Financial Group drew attention by drafting an internal document that targeted private equity firm MBK Partners over the Homeplus affair. It did not hesitate to use harsh language as well as criticism of MBK's actions to date. Given that the funds lent to Homeplus amount to 1.2 trillion won, there is speculation that the document was produced for public opinion warfare.
According to the investment banking industry on the 1st, Meritz prepared a document titled "Key issues regarding MBK & Homeplus restructuring." Meritz divided MBK's Homeplus restructuring-related key issues into five points and expressed opinions, using phrases such as "showboating," "MBK that only shaves others' bones," and "the harms of private equity."
Meritz said of MBK's support measures for Homeplus, "The claim that MBK directly or indirectly provided 300 billion won to debtor Homeplus after the start of rehabilitation proceedings is not true," and added, "All that exists is an estimated 40 billion won personal gift from Chairman Kim Byung-ju and a 78 billion won principal-and-interest joint guarantee provided by an MBK executive for the debtor's DIP (debtor-in-possession) loan."
MBK announced a public apology on the 24th of last month and promised an additional 200 billion won in support, saying this would bring total support to Homeplus to 500 billion won. However, Meritz said, "It is difficult to confirm whether support will be provided, and reasonable questions arise as to whether something that is not substantial support is being packaged as support."
It added, "The gratuitous gift of up to 200 billion won announced in the apology must fully disclose who will provide it, timing, method, and whether conditions exist," and argued, "If it is in the form of a loan rather than cash support, it would again be merely a token measure to deflect responsibility."
Meritz pointed out that MBK's persistent emphasis on canceling 2.5 trillion won of Homeplus common stock for no consideration is merely showboating. Meritz said, "Free cancellation or reduction of existing shareholders' stock is a frequently observed case in restructuring M&A; it acts as a deal catalyst given the special nature of restructuring M&A," and added, "MBK's 2.5 trillion won stake in Homeplus is effectively worthless paper whether liquidation occurs or the company continues to operate."
It also criticized MBK for shirking responsibility to investors in Homeplus asset-backed short-term bonds (ABSTB). Meritz emphasized, "MBK should present a repayment plan with a responsible attitude toward these investors, who trusted Homeplus's credit rating and invested, and then suffered losses due to the sudden filing for corporate rehabilitation."
Finally, it said, "MBK's filing for Homeplus's corporate rehabilitation is an act of shifting the results of 10 years of managerial failure onto many innocent stakeholders," and criticized, "Forcing only their sacrifice without meaningful financial support from shareholder MBK produces numerous innocent direct and indirect victims from individuals to institutions, privatizes gains and socializes losses—the harms of private equity."
The funds lent to Homeplus by Meritz Financial Group affiliates amount to 655.1 billion won from Meritz Securities and 280.7 billion won each from Meritz Fire & Marine Insurance and Meritz Capital, totaling about 1.2 trillion won. Considering Homeplus's bank loans total 1,446.1 billion won, most of the borrowings were made by Meritz Financial.
Meritz says it took collateral on Homeplus's 62 stores nationwide and that their value reaches 4.8 trillion won, so there should be no problem recovering the loans. However, that valuation was assessed before Homeplus's corporate rehabilitation. Concerns have been raised that a large gap between appraisal value and sale price means the loans may not be fully recovered.