Fair Trade Commission Chairperson Ju Biung-ghi declared a plan for strong sanctions in connection with private equity fund (PEF) manager MBK Partners' "eat-and-run controversy," saying, "There need to be measures different from those in place now."
On the 14th, at the National Policy Committee's National Assembly inspection, Chairperson Ju, responding to questions from Democratic Party of Korea lawmaker Kim Hyun-jung, said, "The government should take drastic measures against MBK within the bounds of the law," adding, "The revenue MBK has enjoyed so far in the Korean economy and the corresponding social responsibility are quite important issues." He went on to stress, "We will do our best to impose stern sanctions on illegal acts, fully reflecting the seriousness of the social responsibility that corporations bear."
Lawmaker Kim, referring to MBK's Homeplus rehabilitation process, criticized, "It is estimated that a total of 300,000 people—including workers, store tenants, and families—will suffer damage in MBK's surprise Homeplus rehabilitation process," adding, "If the Fair Trade Commission or financial authorities handle this halfheartedly or treat MBK lightly as they are doing now, MBK's eat-and-run behavior will inevitably be repeated."
She continued, "MBK Chair Kim Byung-ju's nationality is the United States, and he is a so-called 'black-haired foreigner.' He is currently under an overseas travel ban on suspicion of fraud under the Capital Markets Act and the Act on the Aggravated Punishment of Specific Economic Crimes," adding, "Article 11, Paragraph 4 of the Immigration Control Act allows entry to be banned for foreigners recognized as likely to harm the economic order. The justice minister should be asked to impose an entry ban."
In response, Chairperson Ju said, "I fully empathize," but added, "On the issues of exit bans or entry bans, it is more appropriate to consult the Minister of Justice than me."
Kang Jun-hyun, a Democratic Party lawmaker who serves as floor secretary of the National Policy Committee, also pointed out that the Fair Trade Commission's response was inadequate. He criticized, "Instead of saying, 'It's not my jurisdiction,' you should stop it by any means," adding, "The Fair Trade Commission is responding too complacently."
Lawmaker Kang said, "MBK is joining hands with Young Poong to attempt a hostile merger and acquisition (M&A) of Korea Zinc," adding, "If (Korea Zinc) is handed over, won't it end up like Homeplus? Korea Zinc is a key industry and a strategic industry."
Chairperson Ju reiterated, "Regarding MBK, I believe there is a lot the Fair Trade Commission can do," adding, "We will impose stern sanctions."
Meanwhile, MBK Chair Kim Byung-ju appeared as a witness at the National Policy Committee's National Assembly inspection that afternoon and answered related questions.