Kim Byung-joo, chairman of MBK Partners, is under scrutiny for the second consecutive year as he is summoned to the National Assembly audit, following the corporate rehabilitation of Homeplus. His previous lackluster responses during last year's audit have raised concerns, and with ongoing issues related to Homeplus, Lotte Card, and the management dispute at Korea Zinc, there is speculation that lawmakers may issue a summons.
According to political sources, the National Assembly's Industry, Trade, and Energy Committee has selected Kim as a witness for the audit scheduled for October 7. The committee aims to question him about the emergency management funds injected after Homeplus's corporate rehabilitation and the impact on merchants.
Kim Kwang-il, vice chairman of MBK, has also been included as a witness due to the management responsibilities related to Homeplus's rehabilitation.
However, Kim reportedly submitted a letter to Kim Sung-won, the committee chair, explaining his reason for absence. He stated that he does not involve himself in the management of individual portfolio companies and that since Homeplus is currently under rehabilitation, its operations are managed by a trustee, making CEO Cho Joo-yeon a more appropriate representative for the audit.
The opposition party has expressed skepticism about accepting his reason for absence. Given the significant interest in the Homeplus situation from the ruling party, there is a possibility that both parties may agree to issue a summons. Refusal to comply could lead to charges of contempt of the National Assembly.
The National Assembly has consistently summoned Kim in the past. He was requested to attend the audit in 2015 regarding the acquisition of Homeplus but did not attend, citing an overseas trip. In 2024, he was selected as a witness concerning a hostile takeover attempt of Korea Zinc but also failed to appear. Similarly, he did not attend the hearing related to the Lotte Card hacking incident last September.
Kim's only appearance was at last year's National Assembly audit, where he faced questions. However, he consistently claimed he was not involved in Homeplus's management, which drew criticism from lawmakers.
With issues surrounding MBK's portfolio companies emerging as key topics for this year's audit, calls for Kim's summons are expected to intensify. Earlier this year, prosecutors sought arrest warrants for Kim and three other executives from MBK and Homeplus on charges of fraud and violations of capital market laws. However, the court dismissed the warrants, stating that while the damages were significant, the evidence did not warrant arrest. Prosecutors have continued their investigation, summoning Kim as a suspect last month.
Controversy also arose last month when Lotte Card, under MBK's management, approved a cash dividend of 38.2 billion won, despite a decline in operating profit in recent years and a 45-day suspension of new credit card issuances due to a data breach affecting 2.97 million customers.
Concerns are also growing regarding the ongoing management dispute at Korea Zinc, which has maintained a record of 44 consecutive years of operating profit and achieved its highest performance last year. The conflict between Choi Yoon-bum, chairman of Korea Zinc, and MBK, along with Youngpoong, has led to a consensus among lawmakers that they will not overlook MBK's attempts to secure control over Korea Zinc, prioritizing profits from a potential sale.
A National Assembly official stated, "The fact that MBK Partners was not summoned solely due to the Korea Zinc management dispute does not mean that political interest has waned. There remains a strong sentiment to comprehensively examine various issues related to MBK, even as Korea Zinc's management is currently stabilizing its defense against the takeover."
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.