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Chairpersons

MBK Partners Chairman Apologizes for Homeplus Corporate Rehabilitation Case

Strategic Insights

— 1 min read

MBK Partners Chairman Michael ByungJu Kim made a public apology during a National Assembly audit on Tuesday, acknowledging the concern caused by the corporate rehabilitation of Homeplus, the country's second-largest supermarket chain. Kim's first appearance at the audit followed his repeated skipping of previous requests, citing overseas business trips. The audit focused on the company's leveraged buyout and lack of clear management strategy, which have led to the current crisis. MBK Partners has been involved in other high-profile matters, including the management rights dispute with Korea Zinc and the hacking incident involving Lotte Card.

Key Takeaways:

  • MBK Partners Chairman Michael ByungJu Kim apologized for the Homeplus corporate rehabilitation case, stating that the company "regret[s] causing concern to the public."
  • The company has been unable to secure a new owner for Homeplus for over seven months, leading to the closure of 15 stores nationwide.
  • MBK Partners has been involved in other high-profile matters, including the management rights dispute with Korea Zinc and the hacking incident involving Lotte Card.
  • The firm's aggressive leveraged buyout and lack of clear management strategy have been criticized as contributing factors to the Homeplus crisis.
  • Chair Rep. Lee Kang-ill of the Democratic Party of Korea stated that MBK continues to call for government support while using Homeplus' small business owners and supermarket workers as leverage.
  • MBK Vice Chairman Kim Kwang-il assured that all claims from small business owners have been fully settled, with only claims from large corporations and financial creditors remaining.
  • The company has announced the formal launch of its social responsibility committee, which will oversee investment activities to ensure they meet social responsibility standards.

Statistics:

  • Homeplus has been unable to secure a new owner for over 7 months.
  • The company has closed 15 stores nationwide that failed to reach rent agreements.
  • MBK Partners has been involved in various high-profile matters, including the management rights dispute with Korea Zinc and the hacking incident involving Lotte Card.
  • The company has announced the formal launch of its social responsibility committee, set to begin operations on Oct. 22.

Sources:

  • Yonhap - MBK Partners Chairman Michael ByungJu Kim speaks with Vice Chairman Kim Kwang-il during their appearance at a National Assembly audit in Seoul, Tuesday.

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