Homeplus Receives Lifeline as MBK and Meritz Agree on $200 Million Support

Negotiations between MBK Partners and Meritz Financial Group regarding a $200 million emergency operating fund for the financially troubled Homeplus have reportedly reached a preliminary agreement.

According to the retail industry and the Homeplus labor union on July 15, MBK Partners and Meritz Financial have found common ground, contingent on MBK Chairman Kim Byung-joo providing personal guarantees for the full amount. In this scenario, Meritz Financial will offer the emergency operating fund loan.

The union stated, "The funding issue has been resolved," adding that Meritz Financial is expected to confirm the support at a board meeting on July 16, paving the way for the total $200 million recovery fund.

This agreement allows Homeplus to continue its recovery process through an immediate appeal to the court. However, the actual disbursement of funds will be finalized following the Meritz Financial board's decision and the court's ruling.President Lee Jae-myung emphasized the need to transition the disaster response system from a focus on recovery to one centered on prevention, marking the third anniversary of the Osong underpass tragedy.

During a memorial service held on July 15 at the Chungbuk Provincial Office, President Lee stated, "We must shift from responding to accidents after they occur to a preventive approach that stops them before they happen." The remarks were delivered by Jeon Seong-hwan, the Chief of the Integrated Communication Office.

He expressed deep condolences to the families of the victims, saying, "I extend my heartfelt sympathies to the bereaved families and victims who carry the unimaginable pain of that day in their hearts."

President Lee noted, "The Osong underpass tragedy left a painful lesson for our society," pointing out that there were multiple warnings of danger and ample time to prepare. Jensen Huang, CEO of NVIDIA, praised SK Hynix's listing of American Depositary Receipts (ADRs) on the Nasdaq as "incredibly successful" on July 15.

According to Yonhap News, Huang made the remarks after attending a 30th-anniversary event for NVIDIA's partnership with Japanese gaming company Sega in Akihabara, Tokyo. He expressed his happiness regarding the ADR listing when asked for his thoughts.

SK Hynix is a key partner supplying high-performance HBM (high-bandwidth memory), a crucial component for AI semiconductors, to NVIDIA. Huang's comments suggest that the influx of investment from SK Hynix's ADR listing is a positive sign for the expansion of NVIDIA's AI ecosystem. LS Securities has effectively concluded its compensation dispute with investors over the default of asset-backed commercial paper (ABCP) related to China Energy Conservation and Environmental Protection Group (CERCG). The Seoul High Court issued a recommendation for settlement in the lawsuit with investors, and LS Securities is set to pay the determined compensation.

On July 15, LS Securities announced that the Seoul High Court's recommendation for settlement regarding the unjust enrichment claims filed by investors, including Hyundai Securities, BNK Investment & Securities, KB Securities, and Busan Bank, has been finalized.

This decision follows a Supreme Court ruling on the lawsuit filed by investors against Hanwha Investment & Securities and the then-Ebest Investment Securities (now LS Securities) after the CERCG-related ABCP default.

The Seoul High Court ruled that LS Securities and Hanwha Investment & Securities must jointly pay 24.564 billion won, along with interest at 5% from November 9, 2018, to January 13, 2023, and 12% thereafter until full payment. Hyundai Securities agreed to drop all other claims and bear its own legal costs. MBK Partners and Youngpoong, currently in conflict with Korea Zinc's management, held an event in the U.S. related to Korea Zinc's 'Project Crucible.' This event comes after MBK and Youngpoong had previously raised concerns about the project's implementation.

On July 15, industry sources reported that MBK and Youngpoong hosted a reception in Nashville, Tennessee, inviting local figures. The event was attended by MBK Vice Chairman Yoon Jong-ha and representatives from Youngpoong.

During the event, MBK and Youngpoong introduced themselves as the largest shareholder group of Korea Zinc and expressed their support for Project Crucible.

Project Crucible involves the construction of an integrated smelter in Tennessee, a project promoted by the current management led by Chairman Choi Yoon-bum, emphasizing U.S.-Korea economic cooperation and the stabilization of critical mineral supply chains.



* This article has been translated by AI.

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