MBK's Kim Byung-ju submits statement of reasons for non-appearance at National Assembly audit... Political circles consider issuing a subpoena to accompany him

*This content was translated by AI.

It is reported that Kim Byung-ju, Chairman of MBK Partners, who was designated as a witness for this year's National Audit regarding the Homeplus incident, has submitted a statement of reasons stating he will not appear at the audit hearing on the grounds that he does not interfere with management.

According to political circles on the 5th, Kim (Chairman) submitted a statement of reasons for non-appearance to the National Assembly Committee on Industry, Trade and Resources, SMEs and Startups on the 4th. The statement reportedly included that Kim (Chairman) does not interfere with the management of individual portfolio companies, that Homeplus is currently undergoing rehabilitation proceedings and is being operated by an administrator under court guidance, and that MBK Partners does not interfere with management. Instead, Cho Ju-yeon, CEO and Administrator of Homeplus, has expressed his intention to appear at the audit.

The controversy surrounding Kim (Chairman)'s non-appearance before the National Assembly is not unprecedented, leading officials to predict a certain level of impact. He was also designated as an audit witness when MBK acquired Homeplus in 2015 but did not attend citing overseas business trips. In 2024, he was designated as a witness for the Committee on Industry, Trade and Resources, SMEs and Startups and the Committee on Land, Transport and Tourism regarding the management rights dispute over Korea Zinc, but again did not appear citing overseas business trips.

Last year, he also failed to appear at the emergency inquiry by the Political Affairs Committee regarding the Homeplus incident and the hearing by the Ministry of Science and ICT and the Korea Communications Commission regarding the Lotte Card hacking incident. Subsequently, controversy arose when he directly appeared at the Political Affairs Committee audit and responded that he did not know much about the inquiries from Seok Haet-ji-man (Rep.)'s colleagues because he does not interfere with the management of individual companies. Some members of the Political Affairs Committee who raised issues with his remarks at the time filed a complaint with the Prosecution Service in February this year, accusing Kim (Chairman) and Kim Gwang-il, Vice Chairman of MBK, of perjury.

As Kim (Chairman) again cited "non-interference in management" as the reason for non-appearance in this year's audit, demands are emerging from political circles that his direct appearance is necessary. In this audit, major issues are expected to include the responsibility of the largest shareholder, MBK, in the process leading to corporate rehabilitation, and future funding support plans, rather than Homeplus's routine management status.

The amount Homeplus has failed to pay to suppliers reaches approximately 503.2 billion won. According to the rehabilitation plan, the repayment timing for 79.2% of this amount is set by February 2030. Since Kim (Chairman) recently took on joint and several guarantee regarding additional funds for Homeplus's normalization, it is expected that the extent to which MBK will bear financial responsibility in the future will also be raised as an issue to be confirmed at the audit.

Woo Jae-jun, a member of the People Power Party who requested Kim (Chairman) as a witness, stated, "It is difficult to accept that the reasons presented are sufficiently unavoidable to prevent attendance at the National Audit," adding, "Considering the severity of incidents such as Homeplus's non-payment of amounts to small and medium businesses, Kim (Chairman) must appear at the audit."

It is reported that Woo (Rep.) plans to request the issuance of a subpoena to accompany Kim (Chairman) at the plenary session of the Committee on Industry, Trade and Resources, SMEs and Startups on the 6th. Since the Democratic Party of Korea also holds the position that it is necessary to clarify responsibility for the Homeplus incident, there are discussions about the possibility of a subpoena being issued by consensus between the ruling and opposition parties.

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*This content was translated by AI.