MBK and Yeungpoong: Should They Have Held a Reception in the U.S. for the Korea Zinc Project Amid the Homeplus Crisis?

*This content was translated by AI.

MBK Partners (MBK), the largest shareholder of Homeplus, has come under scrutiny after it was revealed that they held a hotel reception in the United States focused on Korea Zinc's U.S. investment project.

In Korea, as responsibility for the major shareholders regarding the Homeplus crisis spreads across the political sphere, financial sector, and labor movement, questions are being raised about whether MBK's continued external activities related to the Korea Zinc management rights dispute were appropriate.

Homeplus temporarily suspended operations at all its large-scale supermarkets nationwide starting on the 13th due to a depletion of operating funds. The Seoul Bankruptcy Court determined that liquidation value exceeds corporate valuation, and if 200 billion won needed for implementing the reorganization plan is not secured by the 17th, there is a possibility that liquidation proceedings will effectively commence.

Calls for MBK's responsibility from the political sphere and labor movement remain intense. The National Assembly's Political Affairs Committee is pushing to hold a hearing targeting MBK, while the Democratic Party of Korea's Euljiro Committee has demanded a full review of National Pension Service investments related to MBK and the qualification of entrusted management companies. Homeplus workers are continuing a sit-in protest in front of MBK headquarters, urging major shareholders to provide responsible solutions.

Concerns over uncertainty in debt recovery are also growing within the financial sector. While damages to supplier companies and investors are becoming reality, MBK is reportedly maintaining its previous stance of providing joint guarantees only for 100 billion won out of the 200 billion won in emergency operating funds (DIP) provided by Marui Financial Group.

Talks between the Homeplus labor union and MBK ultimately failed. According to the Homeplus branch of the Mart Industry Union under the Korean Confederation of Trade Unions, a scheduled meeting with Kim Kwang-il, Vice Chairman of MBK Partners, which was set for the afternoon of the 14th at Homeplus headquarters in Gangseo-gu, Seoul, was canceled after MBK notified on the morning of that day that it would postpone its schedule.

As the Homeplus crisis worsens domestically, MBK continued its external activities in the United States by promoting the Korea Zinc project.

According to industry sources and officials from the Tennessee state economy on the 14th, MBK and Yeungpoong held a reception at a hotel in Nashville, Tennessee, USA, on the 9th (local time) regarding 'Project Crucible,' the U.S. investment project of Korea Zinc.

It was reported that attendees included MBK Vice Chairman Yoon Jong-ha, who serves as the representative executive officer of MBK, along with MBK and Yeungpoong officials, representatives from local lobbying firms in the United States, and prominent figures from Tennessee.

At this event, MBK and Yeungpoong reportedly introduced themselves as the 'Largest Shareholder Group' of Korea Zinc and emphasized their role as the main body supporting and cooperating with Project Crucible.

Vice Chairman Yoon Jong-ha is said to have presented MBK's global investment portfolio at the event, and promotional videos from MBK were also screened. In MBK's video, the company's investment philosophy of "acquiring good companies and turning them into better ones" was introduced, and it was emphasized through hosts and others that the cooperation model between MBK and Yeungpoong could be applied to various investment projects as well.

Interest is also focused on the background of MBK appointing multiple lobbying firms in the United States following this event. Through special purpose corporations (SPCs) such as Korea Enterprise Investment Holdings established to secure management rights over Korea Zinc, MBK has currently appointed three U.S. lobbying firms: Squire Patton Boggs, The McKeon Group, and Checkmate Public Affairs. Industry observers suggest these external activities may have been planned with events like this reception in mind.

Moreover, Project Crucible is a U.S. investment project that was directly planned and promoted from the early stages by Choi Yun-beom (Chairman) and the current management and technical teams of Korea Zinc. In contrast, MBK and Yeungpoong have opposed the project since its announcement last year, filing for injunctions to prevent third-party allocation rights offerings (paid-in capital increase) aimed at establishing a joint venture with the U.S. government.

However, this time, by asserting themselves as the 'Largest Shareholder Group' in the United States without separate consultation with Korea Zinc and emphasizing their role as supporters and cooperators of the project, it is pointed out that this contradicts their previous actions. The core technical team and labor union of Korea Zinc have consistently rejected alignment with MBK and Yeungpoong since the early stages of the management rights dispute and have publicly supported the current management.

In response to this, according to a recent media report, MBK Partners refuted claims by stating, "We have never denied or opposed the strategic value of the U.S. refinery project even once. The injunction was filed because of the 'abnormal third-party allocation rights offering (paid-in capital increase) method' and 'opaque decision-making process' that attempted to push forward unreasonably while excluding major shareholders for the purpose of defending Choi Yun-beom (Chairman)'s management rights."

Furthermore, they emphasized, "Homeplus's corporate reorganization is a completely separate issue from Korea Zinc's investment project for an investment firm. We are working intensely to derive the best possible solution within legal frameworks to normalize Homeplus," and added that it is inappropriate to forcibly link two matters with entirely different natures and subjects to impose a negative frame.

An industry official stated, "MBK held an event highlighting its image as a key partner in the Korea Zinc project despite facing numerous domestic issues that need resolution. It is incomprehensible that while continuing to oppose the Korea Zinc management team and technical staff who planned and promoted the business, they sent messages externally that could make them appear as representatives of the project."

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*This content was translated by AI.