Cheong Wa Dae points out "Homeplus crisis, MBK's unethical practices"... National Assembly moves to hold a hearing

*This content was translated by AI.

The Cheong Wa Dae has finally issued its stance on the Homeplus crisis, drawing attention.

Hong Ik-pyo, Chief of Staff for Political Affairs at Cheong Wa Dae, stated regarding the Homeplus crisis, "It seems unavoidable to point out MBK Partners' unethical acquisition and merger (M&A) methods." He added, "M&A is a kind of necessary evil in the capital market—something that is necessarily required but when it goes wrong, the Homeplus crisis most symbolically demonstrates its side effects."

In an interview with Cheong Wa Dae's new media correspondents on the 6th, Chief Secretary Hong said, "We must reiterate MBK's unethical M&A methods. During the Lee Myung-bak administration, regulations on private equity funds were relaxed, exposing such risks and their potential dangers. The damage has now been confirmed."

He also emphasized the need for regulatory measures in the financial sector. Chief Secretary Hong stated, "Especially given the possibility of large-scale unemployment and widespread harm to partner companies, the financial authorities must actively seek improvements to relevant systems to prevent such incidents from recurring."

Regarding government intervention, Chief Secretary Hong explained, "If a company intending to acquire Homeplus is definitively identified, there may be room for policy financing support or government intervention. However, that situation does not currently exist. The most realistic approach at this stage is to swiftly provide support measures for workers suffering from unpaid wages and small and medium-sized partner companies that supplied goods to Homeplus."

In the National Assembly, too, discussions are spreading regarding the responsibility of MBK, Homeplus's largest shareholder. On the same day, during a plenary session, the National Assembly's Political Affairs Committee decided to move forward with holding a hearing to investigate who is responsible for the Homeplus corporate restructuring crisis.

Min Byeong-deok, a Democratic Party of Korea lawmaker and chair of the party's Euljiro Committee, stated in the meeting, "This crisis is a typical disaster affecting people's livelihoods caused by predatory private equity funds that acquire companies with massive debt, leaving only an empty shell behind." He strongly urged, "To protect the survival rights of 100,000 workers and their families, we must vigorously push for a hearing on the Homeplus crisis."

In response, Yoo Dong-su Jeong Mu-wi (Director) of the same party noted during the plenary session that the opposition party was not present, stating, "Since the opposition party is not attending, once an opposition party secretary is appointed, we will proceed with (the hearing) through consultations among secretaries."

The Political Affairs Committee plans to further discuss in detail whether to hold the hearing and which witnesses to call, following consultations between ruling and opposition party secretaries.

While the Homeplus crisis was partly triggered by the shift toward online shopping as a new trend leading to a decline in offline shopping, voices calling for moral accountability from Homeplus's largest shareholder are growing stronger.

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*This content was translated by AI.