Meritz Financial Group has reiterated its call for MBK Partners and Chairman Kim Byung-joo to take responsibility for funding the recovery of Homeplus. As disputes over additional operating funds continue between MBK Partners and Meritz Financial Group, Meritz emphasized that Chairman Kim's participation in guaranteeing the funds is a reasonable request.
On June 19, Meritz Financial Group stated in a press release, "The MBK Fund No. 3, which invested in Homeplus, has reportedly generated approximately 1.2 trillion won in profits despite the management failures at Homeplus. This raises suspicions that they might consider abandoning Homeplus since they have secured sufficient profits from other investments in the fund."
The statement continued, "As of the end of 2025, MBK Partners is estimated to have earned over 4 trillion won through its four main funds (No. 3, 4, 5, and 6) over the past decade. However, they have been demanding additional loans from creditors without making any efforts to devise effective recovery plans."
This statement comes amid escalating tensions regarding the provision of additional operating funds during Homeplus's recovery process.
Previously, MBK Partners and Homeplus requested a 200 billion won DIP (Debtor-in-Possession) loan from Meritz Financial Group, proposing that MBK would provide a joint guarantee for 100 billion won. However, Meritz claimed that it effectively rejected the loan by stating that MBK should directly secure the remaining 100 billion won.
In response, Meritz Financial Group clarified that this demand represents a minimal principle of shared responsibility for the loan, insisting that MBK and Chairman Kim must first provide substantial financial support and guarantees.
Meritz argued that requesting a guarantee from Chairman Kim for the 100 billion won DIP loan is a standard procedure. "It is entirely reasonable to require a guarantee from those responsible for mismanagement when a company is in such dire straits that it cannot secure emergency operating funds," they stated. "No financial institution, including Meritz, would find it feasible to issue a loan without a guarantee."
Moreover, Meritz Financial Group contended that claims suggesting Chairman Kim and MBK Partners lack the capacity to provide guarantees are unfounded. They pointed out that despite having received substantial performance fees from private equity fund management, MBK appears to be shifting the burden of losses onto creditors, which they described as a classic case of "socializing losses while privatizing profits."
Additionally, Meritz warned that executing the DIP without effective guarantees could shift risks onto other subordinated creditors and short-term bond investors.
Meritz stated, "Requesting the implementation of a senior DIP without effective guarantees is tantamount to asking other creditors to bear additional risks and losses. It is unreasonable to demand a 200 billion won loan now, claiming that the previous 100 billion won was insufficient, after having provided substantial funding to Homeplus when refinancing was difficult last year."
They urged that MBK should promptly accept the terms for Meritz's 100 billion won DIP loan and guarantee, stating, "The time for unreasonable delays must end, and responsible decisions must be made by the majority shareholder."
* This article has been translated by AI.
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