MBK Partners and Meritz Financial failed to reach agreement on a 200 billion won operating fund structure for Homeplus' rehabilitation appeal during a National Assembly meeting on July 9, according to Democratic Party lawmakers Kim Nam-geun and Min Byung-duk. The dispute centers on conflicting preconditions: MBK Chairman Kim Byung-joo offered a 100 billion won personal guarantee but only after a 200 billion won loan contract is executed, while Meritz requires legal opinions, accounting firm reviews, and board approval before executing the 100 billion won portion. The disagreement emerged during a meeting between lawmakers and National Pension Service officials regarding Homeplus' court rehabilitation proceedings and the immediate appeal funding requirements.
MBK Demands Loan Contract Before Personal Guarantee Execution
Kim Nam-geun stated after the meeting that "both sides have planted many landmines," explaining that "MBK says they will provide personal guarantees but only after the 200 billion won loan contract is concluded, while Meritz will not provide a 200 billion won loan based on a 100 billion won guarantee." He added that Meritz structured the 100 billion won execution to require legal firm opinions, accounting firm opinions, and board resolutions, making it difficult to execute the operating funds.
Min Byung-duk, the Democratic Party's Euljiro Committee Chairman, stated "we thought the 100 billion won was already secured because Kim Byung-joo expressed his intention to guarantee," but explained that "Meritz said they would execute the 100 billion won only after confirming through law firms, accounting firms, and the board that there is no possibility of breach of trust." Min added, "What surprised us was that MBK said they would not submit the 100 billion won guarantee documents unless the 200 billion won loan documents were signed."
Democratic Party Lawmakers Criticize Both Parties' Funding Stance
The morning meeting between MBK and Meritz Financial Group executives witnessed heated exchanges over operating fund execution. Min emphasized, "This was the first time we heard that they would only submit the 100 billion won guarantee after writing a commitment for the 200 billion won loan. Isn't this an extremely outrageous situation?"
Kim Nam-geun announced plans for a Homeplus hearing, stating "we will definitely hold a Homeplus hearing to reveal whether MBK and Meritz intentionally tried to push for liquidation." He added, "We reprimanded them for whether the two groups are blatantly intending liquidation with the calculation that their own interests would be greater if the rehabilitation procedure proceeds."
Min Byung-duk referenced Solomon's judgment to criticize both companies' refusal to provide funding support, stating "the real mother says 'the child must not die, you take it.' These two groups are fake mothers," and raised his voice saying "the government must step in."
National Pension Service Holds 2.2 Trillion Won in Remaining MBK Fund Investments
Regarding the National Pension Service's recovery of investments in MBK, lawmakers confirmed that "according to current verification, (the National Pension) invested in 11 funds managed by MBK, two have been liquidated, two are being liquidated, and approximately 2.2 trillion won remains."
They explained that "if Financial Supervisory Service sanctions are confirmed, 150 billion won can be immediately recovered, and the recoverable amount is approximately 1.2 trillion won," but noted "that is contingent on the National Pension not incurring losses, and requires consent from investors (LPs) to recover."
The Financial Supervisory Service held a sanctions deliberation committee meeting on the 2nd and determined that MBK harmed investor interests by waiving redemption rights through favorable changes to RCPS (Redeemable Convertible Preferred Stock) conditions for Homeplus via a special purpose vehicle (SPC) established for the Homeplus acquisition, resulting in conclusions including "suspension of duties."
Kim added that "until now, social responsibility investment has not been applied to alternative investments, but going forward (the National Pension) said they would conduct preliminary inspections and invest in alternative investments and private equity funds."
FAQ
What is the core disagreement between MBK Partners and Meritz Financial over Homeplus funding?
MBK Partners requires a 200 billion won loan contract to be executed before Chairman Kim Byung-joo submits a 100 billion won personal guarantee, while Meritz Financial requires legal opinions, accounting firm reviews, and board approval before executing the 100 billion won portion. Democratic Party lawmakers stated on July 9 that both parties have created preconditions that make operating fund execution difficult for Homeplus' rehabilitation appeal.
How much has the National Pension Service invested in MBK-managed funds?
The National Pension Service invested in 11 funds managed by MBK Partners, with approximately 2.2 trillion won remaining after two funds were liquidated and two are currently being liquidated. Lawmakers confirmed on July 9 that if Financial Supervisory Service sanctions are finalized, 150 billion won could be immediately recovered, with total recoverable amounts reaching approximately 1.2 trillion won, subject to no losses and investor consent.
