Kim Kwang-il, Vice Chairman of MBK Partners, appeared before the National Assembly to clarify suspicions surrounding Homeplus’s recent corporate rehabilitation filing but instead fueled more controversy. The Chairman of MBK Partners, Kim Byung-joo, did not attend, citing an overseas business trip, prompting lawmakers from both ruling and opposition parties to push for criminal prosecution and a hearing. Vice Chairman Kim maintained a stance, reiterating the same responses, which only deepened distrust.
During an emergency inquiry at the National Assembly on April 18, Vice Chairman Kim stated that the rehabilitation procedure was unavoidable to protect their partners and employees due to the downgraded credit rating. He explained that with their credit rating reduced to A3-, it became nearly impossible to trade the company’s commercial papers (CP) on the market, risking a default if they couldn’t manage repayments ranging from 600 to 700 billion KRW within three months.
However, lawmakers expressed skepticism about the sudden corporate rehabilitation filing and the quick approval from the Seoul Rehabilitation Court, questioning the preparation timeline. Despite Homeplus’s claims of being unaware of the impending downgrade, evidence suggested otherwise, raising further distrust as the company continued to issue financial papers shortly before the filing.
Financial authorities, including the Financial Services Commission and the Fair Trade Commission, announced comprehensive investigations into whether MBK and Homeplus preplanned the corporate rehabilitation and the issuance of bonds. They aim to address any potential illegal activities, including fraudulent bond sales, incomplete sales, and overdue payments to small suppliers.
Criticism also arose over Chairman Kim’s absence, as lawmakers considered it a deliberate avoidance. This led to calls for a hearing and potential filing for non-appearance, emphasizing the need for accountability from MBK Partners regarding Homeplus’s crisis. Meanwhile, Vice Chairman Kim did not provide clear answers regarding Chairman Kim’s personal monetary contributions, only stating that discussions were ongoing with Homeplus about the amount and timing.