An Su-yong, Homeplus Branch President of the Mart Union, says, "MBK sold Homeplus assets to secure its own interests and used the profits from Homeplus to repay debts."

*This content was translated by AI.

Park Hong-bae, a lawmaker of the Democratic Party of Korea, and An Su-yong, Homeplus Branch President of the Mart Industry Labor Union under the Korean Confederation of Trade Unions, appeared on the Newstapa YouTube broadcast 'Newstapa Live' on the 23rd to criticize MBK Partners' acquisition and operation of Homeplus, mentioning the need for regulations on private equity funds.

Park Hong-bae, a lawmaker of the Democratic Party, added at the event, "The Prosecution Service must conduct a swift investigation into the various allegations against MBK Chairman Kim Byung-ju, and regarding the MBK sanction deliberation, the Financial Supervisory Service must fulfill its responsibilities."

Recently, the Anti-Corruption Investigation Division 2 of the Seoul Central District Prosecutors' Office, led by Chief Prosecutor Lee Sang-hyeok, summoned a Homeplus executive in charge of finance as a suspect. This marks the first suspect interrogation following the case reassignment, and it is reported that the investigation into the issuance process of Homeplus asset-backed short-term commercial paper (ABSTB) and the responsibility of major shareholder MBK has drawn attention from the political sphere and the labor community.

Regarding the problem of ABSTB victims, Park (Rep.) stated, "The issue is that while applying for rehabilitation, they kept the ABSTB circulating," and added, "Although the Financial Supervisory Service investigation is underway, no results have been produced for a considerable period, causing frustration in the National Assembly as well."

Park (Rep.) explained, "MBK acquired the company with the purpose of purchasing it at the minimum cost based on the book value of real estate held by Homeplus, and then selling off those assets to generate profits," and further stated, "I believe the biggest problem was the regulatory gap that allowed private equity funds to acquire companies and sell assets without any hesitation, without receiving any supervision, and without properly reporting the process to the regulatory authorities."

The Homeplus ABSTB Victims' Committee plans to hold a press conference in front of the MBK headquarters in Jongno-gu, Seoul, on the 26th, demanding that MBK Chairman Kim Byung-ju make a responsible capital contribution.

An Su-yong, Homeplus Branch President, strongly criticized, "The major shareholder, MBK, actually has nothing to lose," stating, "They have extracted everything they could over the years, and now, as 10 years have passed, they are applying for rehabilitation to achieve an easy exit (recovery of investment)."

The branch president said, "Before 2015, Homeplus was the second-largest retail company, but when MBK acquired it for 7.2 trillion won, nearly 5 trillion won of that amount was taken on as debt in Homeplus's name," and revealed, "Even when Homeplus made money through business, the structure became one where the money was used to repay debts, and MBK sold Homeplus assets and real estate to secure its own interests."

Park (Rep.) remarked, "In the case of Homeplus, the situation is one where the market takes only the profits and shifts the responsibility to society," and noted, "Our Constitution explicitly states that the market can be regulated and adjusted, and the government must intervene regarding market dominance and abuse of economic power in accordance with Article 119, Paragraph 2 of the Constitution."

Park (Rep.) explained, "This is commonly referred to as 'systemic risk,' where regulations in the market failed to function, leading to problems such as ABSTB, as well as issues for Homeplus workers and affiliated vendors," and added, "It is necessary to strengthen the regulation of private equity funds themselves to align with European standards."

Park (Rep.)'s argument is that to prevent a recurrence of the Homeplus crisis, regulations on private equity funds must be strengthened, such as requiring mandatory reporting to the Financial Supervisory Service in cases of leveraged buyouts or asset sales.

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*This content was translated by AI.