MBK chairman apologizes for Homeplus fiasco during first appearance at Assembly audit
Michael ByungJu Kim, chairman of MBK Partners, which owns Homeplus, answers lawmakers’ questions during his appearance at a National Assembly audit in Seoul, Tuesday. This marked his first appearance before an Assembly audit, as he had repeatedly skipped previous requests, citing overseas travel schedules. Korea Times photo by Jeong Da-bin
Michael ByungJu Kim, chairman of MBK Partners, Homeplus’ largest shareholder, made his first appearance at a National Assembly audit Tuesday, offering a public apology for the corporate rehabilitation case of the country’s second-largest supermarket chain.
“We regret causing concern to the public,” he said during an audit by the Assembly’s National Policy Committee. “We are committed to fulfilling our social responsibility toward Homeplus employees and stakeholders.”
Homeplus, which filed for corporate rehabilitation in March amid a liquidity crunch, has been unable to secure a new owner for more than seven months.
The situation has drawn national attention, particularly after the decision to close 15 stores nationwide that failed to reach rent agreements, sparking strong backlash from local residents.
In addition to the Homeplus case, the private equity firm has been involved in other high-profile matters, including the management rights dispute with Korea Zinc, in which it joined forces with Young Poong to oust company Chairman Choi Yun-beom. MBK has also faced criticism over the hacking incident involving Lotte Card, which it owns.
Despite these incidents, Kim, a U.S. citizen, repeatedly skipped National Assembly appearance requests, citing overseas business trips, which drew public reproach. This made his attendance on Tuesday highly anticipated.
During the audit, Rep. Lee Kang-ill of the Democratic Party of Korea said, “The Homeplus crisis stems from MBK’s aggressive leveraged buyout and lack of a clear management strategy. Yet the firm continues to call for government support while using Homeplus’ small business owners and supermarket workers as leverage.”
Lee also pointed out that MBK has repeatedly promised investment and growth when acquiring companies such as Doosan Machine Tools — now DN Solutions — but has primarily focused on recouping its own funds.
Kim responded briefly, saying, “I will carefully consider your remarks.”
MBK Partners Chairman Michael ByungJu Kim, right, speaks with Vice Chairman Kim Kwang-il during their appearance at a National Assembly audit in Seoul, Tuesday. Yonhap
MBK Vice Chairman Kim Kwang-il, who accompanied the chairman, added, “Following Homeplus’ corporate rehabilitation, all claims from small business owners have been fully settled. Only claims from large corporations and financial creditors remain, and we are committed to completing the process successfully to ensure these are repaid.”
On Monday, the day before the audit, MBK announced the formal launch of its social responsibility committee, set to begin operations on Oct. 22.
The firm said the committee will oversee its investment activities to ensure they meet social responsibility standards and evaluate their impact on stakeholders, including shareholders, employees, customers and business partners.