Massive capital management by MBK, passive on guarantee requests amid Homeplus crisis... standoff with creditors

*This content was translated by AI.

Critics point out that MBK, which manages massive capital, has refused to provide payment guarantees to resolve the Homeplus crisis, raising doubts about the sincerity of efforts to save Homeplus.

Although Marius Financial Group, Homeplus's largest creditor, stated it would provide funding on the condition of a guarantee from MBK, MBK, which manages assets worth tens of trillions of won, has rejected this, intensifying the standoff with the creditor group.

According to industry sources on the 20th, Marius Financial conveyed its position that it could consider providing new short-term operating funds (bridge loans) of about 100 billion won for a period of two to three months in response to Homeplus's funding request. However, as conditions for support, it proposed "immediate early repayment upon inflow of Express sale proceeds," "interest rates similar to existing DIP (emergency operating funds) loans," and "joint and several guarantees from MBK, the largest shareholder, and management."

Regarding the funding conditions proposed by Marius Financial, Homeplus has accepted the early repayment proposal but expressed reluctance toward the joint and several guarantees from MBK, the largest shareholder, and management. On the 18th, Homeplus issued a press release explaining to Marius Financial that "since joint and several guarantees have already been provided for other operating fund support, we proposed a subordinate lien on real estate income rights instead of joint and several guarantees."

MBK also rejected the demand for joint and several guarantees, leading industry observers to interpret that securing funds for Homeplus's recovery has become virtually impossible. On the 17th, Marius Financial stated, "We requested a guarantee from MBK to minimize the risk of additional legal disputes such as embezzlement, but were rejected." In the market, demanding collateral or guarantees for new bridge loans is common, and for Marius Financial, which is already under significant pressure regarding the recovery of approximately 1.2 trillion won lent to Homeplus, securing collateral or guarantees is essential for new lending.

Ultimately, as the standoff between MBK and Marius Financial intensifies, criticism is emerging that MBK, which claims to be the largest private equity fund in Northeast Asia and manages vast sums of money, is showing an overly passive attitude.

According to data from the Financial Supervisory Service (as of the end of December 2024), MBK manages assets exceeding 17 trillion won. With MBK showing a negative attitude even toward guarantee requests for new loans, let alone direct funding support for Homeplus, the prevailing view is that Homeplus's recovery will become even more difficult.

Moreover, it is known that MBK's internal rate of return for managing its third fund, which includes Homeplus, exceeds 10%, and its management fees are also substantial. According to reports by global media on the 50th richest people in South Korea in 2026, MBK Chairman Kim Byung-ju's assets are analyzed to be 9.9 billion dollars, with Hanwha exceeding 14 trillion won.

In this situation, it is pointed out that the self-help efforts and responsible decisions by MBK, which has acquired and operated the company, and Kim Byeong-ju (Chairman) are even more important.

Meanwhile, the People's Participation Alliance recently issued a statement pointing out that Homeplus's Express sale and funding plan lack effectiveness. In its statement, the People's Participation Alliance noted, "The sale was conducted at a level lower than the price initially discussed in the market, and the funds MBK agreed to bear do not meet the required liquidity scale." In response, MBK stated, "(The Express sale) was a transaction conducted according to the rehabilitation procedure," and "It was not a transaction independently promoted for the purpose of asset recovery; considering conditions such as assuming debt, it is a transaction valued at around 30 billion won."

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*This content was translated by AI.