MBK Controversy Over Foreign Activities in the U.S. at the Time of Homeplus Bankruptcy Procedure Dismissal and Financial Supervisory Service's Severe Sanctions

*This content was translated by AI.

MBK Partners is reportedly preparing a hotel reception in the United States to promote its vision regarding investments in Korea Zinc, sparking controversy.

At that time, the Financial Supervisory Service was reviewing whether to impose severe sanctions, including suspension of duties, on MBK Partners, the largest shareholder, in connection with the "Homeplus crisis," while political circles and labor groups were pressuring MBK. Furthermore, on the 3rd, the court issued a decision to dismiss Homeplus's rehabilitation proceedings. In this context, MBK's insistence on carrying out foreign activities related to Korea Zinc, another investment target, has drawn negative scrutiny.

MBK responded by stating that "Homeplus corporate rehabilitation and the Korea Zinc investment are entirely separate issues for different investment firms."

The Financial Supervisory Service concluded its review of the disciplinary action plan based on the investigation results against MBK Partners at a sanctions deliberation committee meeting held on the 2nd. Although no conclusion was reached during two previous sanctions reviews in December last year and January this year, the review was finalized just one day before the court's deadline for approving Homeplus's rehabilitation plan. While the Financial Supervisory Service did not officially disclose the level of sanctions, it is reported that the severe sanction plan, which includes suspension of duties and was reportedly pre-notified to MBK in November last year, remains in place.

In response, MBK has stated that the content of the sanctions will not be finalized solely based on the results of the sanctions review and pledged to diligently provide explanations during the remaining procedures.

Subsequently, on the 3rd, the Seoul Bankruptcy Court decided to dismiss Homeplus's rehabilitation proceedings, judging that no feasible funding plan had been secured. However, it was noted that if a plan to secure 200 billion won in emergency operating funds were submitted by the 20th of this month—the deadline for filing an immediate appeal—the court could reconsider extending the rehabilitation process. Consequently, strong pressure and criticism were directed at MBK and Meritz from various sectors, including political circles and labor groups, urging them to secure funding.

However, following this, Homeplus announced temporary closures at all 67 of its business locations nationwide, halting operations simultaneously. Additionally, it unilaterally canceled a scheduled meeting with Kim Kwang-il, Executive Vice Chairman of MBK Partners, which was to be held with the Homeplus labor union, leading to concerns that the company was effectively heading toward bankruptcy proceedings.

Even amidst these developments, it is reported that MBK proceeded with foreign activities in the United States, highlighting the Korea Zinc project. According to industry sources and officials from the Tennessee state economy sector, MBK and Yeungpoong held a reception on the 9th (local time) at a hotel in Nashville, Tennessee, regarding "Project Crucible," the U.S. investment project of Korea Zinc.

Given that invitations had to be sent out in advance and schedules coordinated due to the nature of the event, and considering when local dignitaries received their invitations, it is assessed that preparations and execution of the event likely took place despite the series of circumstances, including the Financial Supervisory Service's sanctions review and the court's decision to dismiss Homeplus's corporate rehabilitation.

It is reported that the event was attended by MBK Executive Vice Chairman Yoon Jong-ha, who serves as the representative executive officer of MBK, along with MBK and Yeungpoong officials, representatives from U.S. lobbying firms, and local Tennessee dignitaries. At this gathering, MBK and Yeungpoong reportedly introduced themselves as "major shareholders" of Korea Zinc and explained their willingness to cooperate regarding Project Crucible.

Vice Chairman Yoon Jong-ha is reported to have presented MBK's global investment portfolio at the event, and a promotional video produced by MBK was also screened. The video reportedly conveyed MBK's investment philosophy: "Acquiring good companies and transforming them into better ones."

As this fact became known, voices questioning the appropriateness of MBK's actions have spread, particularly online.

After the decision to dismiss Homeplus's rehabilitation proceedings, difficulties arose in securing emergency operating funds, raising concerns about liquidation and the survival rights of Homeplus workers. In this context, there are views that it was inappropriate for MBK to conduct promotional activities introducing its investment philosophy in the United States. Criticism intensified especially when MBK notified on the morning of the 14th—the day it had promised to meet with the Homeplus labor union—that it would postpone its schedule.

Attention is also focusing on the background behind MBK's appointment of multiple lobbying firms in the United States through this event. To secure control over Korea Zinc, MBK has established special purpose vehicles (SPCs) such as Korea Enterprise Investment Holdings and currently holds contracts with three U.S. lobbying firms: Squire Patton Boggs, The McKeon Group, and Checkmate Public Affairs. Industry sources are also showing interest in the potential connection between these firms and MBK's foreign activities in the United States, including this reception.

In response, MBK maintains that linking the Homeplus and Korea Zinc matters is inappropriate. According to reports from some media outlets, MBK stated: "Homeplus corporate rehabilitation is entirely separate from the Korea Zinc investment issue; it is a matter for different investment firms. We are striving to find the best solution within legal frameworks to normalize Homeplus." It further added that "two issues with completely different natures and subjects are being forcibly linked to impose a negative frame."

A industry official remarked, "It is puzzling that MBK held foreign events related to other investment companies while facing numerous domestic issues that need resolution." The official continued, "While acquiring companies and selling them at high prices after becoming major shareholders may be their core business, such actions can provoke controversy from the perspective of social responsibility."

Meanwhile, MBK Partners and Meritz Financial Group reached an agreement on the 15th to provide Homeplus with 200 billion won in emergency operating funds. It is understood that both sides arrived at this consensus on the condition that Kim Byung-ju, Chairman of MBK Partners, personally guaranteed the 200 billion won.

<© STARNEWS. All rights reserved. No reproduction or redistribution allowed.>

*This content was translated by AI.