Meritz Financial Group is reviewing support for 100 billion won in emergency working capital (DIP financing) to help normalize management at cash-strapped Homeplus Co. and ensure stable operations.
However, Meritz proposed a condition that the headquarters of MBK Partners and Chair Kim Byung-ju must provide a guarantee.
Meritz Securities said on the afternoon of the 11th that it is checking specific guarantee terms to provide the financial support requested by lawmakers after meeting with Democratic Party of Korea lawmakers Yoo Dong-soo, Min Byung-deok, Kim Nam-geun, and Lee Kang-il.
It explained that, given the legal constraints such as the duty of loyalty to shareholders under the recently revised Commercial Act, a firm guarantee from MBK headquarters and Chair Kim Byung-ju is essential.
Initially, Meritz Financial took the position that providing 100 billion won in support would be difficult due to legal constraints such as the duty of loyalty to shareholders and the duty of care.
However, considering Chair Kim Byung-ju and MBK's creditworthiness, it is said to have judged that support within the 100 billion won range is feasible. It was reported to be identifying MBK's specific guarantee terms.
The review of this funding support was pursued to back Homeplus Co.'s essential business operations. The aim is to promote job security for Homeplus Co. employees and to ease payment burdens for partners facing funding pressure.
A Meritz Financial Group official said, "Protecting the many stakeholders, including Homeplus Co. employees and partner companies, is an important social role of financial institutions," and added, "We will provide support if there is a guarantee from MBK headquarters and Chair Kim Byung-ju."