The Korea Times

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

As the financial regulator weighs sanctions against MBK Partners over its handling of the Homeplus acquisition, attention is turning to whether the private equity firm’s last-minute effort to keep the retailer afloat could influence the severity of the penalty. The Financial Services Commission (FSC) has recently begun reviewing disciplinary measures proposed by the Financial Supervisory Service (FSS) on July 2. The FSS recommended a three-month suspension on MBK’s management of the Homeplus buyout fund, along with an institutional warning against MBK in its capacity as the general partner managing the private equity fund. If upheld, the warning would mark the first major regulatory sanction imposed on a domestic private equity fund manager. An institutional warning could affect MBK’s ability to raise capital from major limited partners, including the National Pension Service (NPS). At the center of the case is the firm’s treatment of redeemable convertible preferred shares (RCPS) — a type of preferred stock that can be redeemed by investors under certain conditions — issued

Jul 22, 2026By Park Han-sol

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

Companies

Homeplus' rehabilitation revived after court reverses termination

Homeplus won a reprieve on Tuesday after a court reversed its decision to terminate the retailer’s rehabilitation proceedings, concluding that a newly secured 200 billion won ($135 million) emergency loan had restored the viability of its turnaround plan. The Seoul Bankruptcy Court overturned its July 3 ruling and extended the deadline for creditors to vote on Homeplus’ rehabilitation plan until Sept. 4, giving the cash-starved retailer another chance to complete its court-led restructuring. The decision came just a day after Homeplus appealed the earlier ruling, having secured the full debtor-in-possession (DIP) loan from its largest creditor, Meritz Financial Group. The financing may have pulled the company back from the brink of liquidation, but it does little to resolve the deeper issues behind its decline. Ultimately, Homeplus’ survival will depend on attracting a strategic buyer or fresh investment — an outcome industry observers say remains far from certain. One immediate obstacle is the company’s mounting administrative claims, which take priority over other debts under

Jul 21, 2026By Park Han-sol

Homeplus' rehabilitation revived after court reverses termination

Economy

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Bae Jae-kyu, CEO of Korea Investment Management, has issued a rare warning, urging investors to “pull out of” single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix before mounting losses deepen. The remarks, made in a now-deleted Facebook post on Monday evening, were highly unusual as they came from the head of an asset management company which had launched some of the very products he was cautioning against. “I regret having to say this as the CEO of an asset manager that operates single-stock leveraged ETFs,” he wrote. “With volatility in the underlying shares this high, losses can compound day after day. Even if the stock itself eventually returns to where it started, the ETF may never fully recover. No one anticipated volatility on this scale.” Leveraged ETFs are designed to deliver two or three times the daily return of an underlying asset, typically a broad market index such as the KOSPI or the S&P 500. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individu

Jul 21, 2026By Park Han-sol

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Companies

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Homeplus, once Korea’s second-largest discount store chain, formally appealed a court decision to terminate its rehabilitation proceedings, Monday, after securing a 200 billion won ($135 million) emergency loan. Although the last-minute financing may have pulled the company back from the brink of liquidation, its return to normal business remains far from assured. To stay afloat, Homeplus must rebuild supplier confidence, secure fresh liquidity and win back customers after months of disruption. The appeal follows Meritz Financial Group’s approval of the financing on July 16, after private equity firm MBK Partners, Homeplus’ owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession (DIP) loan. While the Seoul Bankruptcy Court ended the retailer’s rehabilitation proceedings on July 3, it left the door open to reconsidering the decision if Homeplus obtained the minimum funding needed to carry out its turnaround plan before Monday’s appeal deadline. The company’s first hurdle is convincing the court t

Jul 20, 2026By Park Han-sol

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Economy

Policy-driven insurance products fall flat with consumers

A 62-year-old business owner surnamed Park, who has been behind the wheel for 34 years, recently learned he could have qualified for a discount on his auto insurance by participating in the government’s vehicle rotation program, a temporary energy-saving measure introduced during heightened concerns over global oil supplies following the U.S.-Iran conflict. But he doesn’t think he missed much. “I didn’t see much point in going through the hassle for a temporary policy rider that could disappear at any time,” Park said. “And even if I qualified, the discount would have been only about 10,000 won ($6.80) a year. It simply wasn’t worth it.” Introduced by nonlife insurers in May at the request of financial authorities, the special rider offered a 2 percent discount on annual auto insurance premiums to motorists who voluntarily complied with the government's five-day vehicle rotation program, under which private vehicles were asked to stay off the road one designated weekday based on their license plate numbers. To qualify, drivers had to submit proof of compliance, but for m

Jul 20, 2026By Park Han-sol

Policy-driven insurance products fall flat with consumers

Companies

MBK, Meritz strike last-ditch deal to rescue Homeplus

Homeplus, once Korea's second-largest discount store chain, secured a 200 billion won ($135 million) emergency loan, Thursday, giving itself a chance to revive its court-led rehabilitation after its largest creditor, Meritz Financial Group, approved the financing. The decision came a day after private equity firm MBK Partners, Homeplus' owner, and its chairman, Michael ByungJu Kim, agreed to provide joint personal guarantees for the full amount of the debtor-in-possession loan. The funding allows Homeplus to appeal the Seoul Bankruptcy Court's earlier decision to terminate its rehabilitation proceedings. The court ended the restructuring process on July 3, ruling that the company had failed to secure the minimum 200 billion won needed to carry out its turnaround plan. It nevertheless left the door open to reconsidering the case if the financing was secured before the July 20 appeal deadline. The breakthrough follows months of deadlock between Meritz and MBK over the size of the loan and the guarantees required to secure it. Meritz had previously agreed to lend up to 100 billion won, provi

Jul 16, 2026By Park Han-sol

MBK, Meritz strike last-ditch deal to rescue Homeplus

Policy

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

The Bank of Korea (BOK) raised its benchmark interest rate Thursday, for the first time in three and a half years, as the semiconductor-driven economic recovery, stubborn inflation and lingering financial stability risks have combined to bolster the case for tighter monetary policy. The central bank lifted its policy rate by 25 basis points to 2.75 percent at its Monetary Policy Board meeting, marking its first rate increase since January 2023. BOK Gov. Shin Hyun-song also signaled that further rate increases remain on the table, saying the bank would “continue to respond through monetary policy until we are confident that inflation is converging sustainably toward our target.” A major factor behind Thursday’s move was the sharp improvement in Korea’s growth outlook, fueled by the global artificial intelligence (AI) boom and soaring demand for semiconductors. As economic momentum strengthens, the central bank has less need to support activity through ultra-accommodative policy and can instead focus on containing inflation. Shin said Korea, a key player in the global AI supply cha

Jul 16, 2026By Park Han-sol

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

Economy

President orders swift measures on risks of single-stock leveraged ETFs

President Lee Jae Myung on Wednesday urged financial authorities to swiftly draw up measures to address risks posed by single-stock leveraged exchange-traded funds (ETFs) tied to Samsung Electronics and SK hynix, as the high-risk products come under mounting criticism for exacerbating volatility in the domestic stock market. Speaking at a policy briefing at Cheong Wa Dae, Lee singled out the controversial products, asking Korea Exchange Chairman Jeong Eun-bo, “Isn't there quite a stir over these ETFs?” The president then instructed the Financial Services Commission (FSC) and the Financial Supervisory Service (FSS) to “quickly put together well-crafted follow-up measures” to address the issue. Leveraged ETFs are designed to magnify the daily gains or losses of an underlying asset, typically a broad market index such as KOSPI or the S&P 500, by two or three times. Single-stock versions take that concept a step further, allowing investors to make amplified bets on the direction of an individual company rather than a diversified benchmark. While the structure can turbocharge returns

Jul 15, 2026By Park Han-sol

President orders swift measures on risks of single-stock leveraged ETFs

Economy

Stock rally lifts sales of investment-linked pension insurance

An unprecedented rally in Korean stocks this year has sparked a surge in demand for investment-linked pension insurance, according to data released by Toss Insurance, Wednesday. The insurer said variable annuities, a type of pension insurance that invests part of policyholders’ premiums in assets such as stocks and bonds, emerged as one of the standout products in the first half of the year. The findings are based on policies purchased through insurance advisers on the Toss platform. Interest accelerated as the benchmark KOSPI extended its record-breaking rally this year, topping the 9,000-point mark for the first time in June and boosting retail investors’ appetite for market-linked investment opportunities. Such momentum naturally lifted overall pension insurance sales, with new policies purchased through Toss Insurance climbing 78.1 percent from a year earlier. While customers in their 50s and older remained the largest buyers, a notable increase was seen in younger consumers, with new policies purchased by those in their 20s and younger surging 97.5 percent. The shift points to gr

Jul 15, 2026By Park Han-sol

Stock rally lifts sales of investment-linked pension insurance

Banking & Finance

AI is rewriting corporate leadership playbook: MetLife global HR chief

“The playbook just hasn’t been written yet.” That’s how Shurawl Sibblies describes the challenge confronting today’s leaders as artificial intelligence (AI) accelerates change faster than organizations can comfortably absorb it. For the MetLife executive vice president and chief human resources officer (CHRO), however, the technology itself is only part of the story. The more profound shift, she argues, lies in the nature of leadership itself. “The pace of change, the velocity, is so fast and probably unlike anything we’ve ever experienced,” Sibblies said during her first visit to Korea last week. That, she believes, calls for a different leadership instinct. In an environment where change outpaces experience, the willingness of leaders to admit they don’t have every answer is becoming as important as their ability to provide direction. “Making it OK to be vulnerable with your teams and say, ‘I don’t have all the answers, but this is what I do know, and we’re going to learn together,’ makes such a difference,” she said. “It’s a bit of humility that’s re

Jul 15, 2026By Park Han-sol

Park Han-sol

Read more

Can MBK's last-minute Homeplus rescue mitigate regulatory sanctions?

Homeplus' rehabilitation revived after court reverses termination

Asset manager's rare warning reaffirms risks of single-stock leveraged ETFs

Homeplus appeals court's rehabilitation termination, faces uphill battle for turnaround

Policy-driven insurance products fall flat with consumers

MBK, Meritz strike last-ditch deal to rescue Homeplus

BOK begins tightening cycle as chip boom fuels growth, inflation concerns

President orders swift measures on risks of single-stock leveraged ETFs

Stock rally lifts sales of investment-linked pension insurance

AI is rewriting corporate leadership playbook: MetLife global HR chief

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