"Retirement Funds Disappeared"... Homeplus Flyer Scam Victims Rally

Countermeasure Committee Demands Recognition of Commercial Claims
"Homeplus, Card Companies, and MBK Orchestrated the Scheme"

As Homeplus entered corporate rehabilitation, investors in asset-backed short-term electronic bonds (ABSTB) who suffered losses urged that their bonds be recognized as commercial claims.

Victims of Homeplus asset-backed electronic short-term bonds (ABSTB) held a press conference on the 12th in front of the Financial Supervisory Service in Yeouido, Seoul, demanding that their investments be recognized as commercial transaction bonds. Photo by Hyunseok Yoo

On the 12th, individual investors in Homeplus ABSTB held a press conference in front of the Financial Supervisory Service in Yeouido, Seoul, calling for the recognition of ABSTB as commercial claims and for priority repayment. This conference marked the first collective action by Homeplus ABSTB investors, with about 20 people gathered.

At the press conference, a daughter of a Homeplus ABSTB investor spoke out, revealing that her parents' retirement fund of 200 million won had disappeared. She said, "My mother collapsed from the shock and is now unable to carry out daily activities," adding, "This money is like their life savings, earned through a lifetime of hard work, so please return it as soon as possible."

Another victim who invested 200 million won expressed outrage, saying, "It is absurd and outrageous that the bonds were issued before the credit rating was downgraded."

The 'Homeplus Securitized ABSTB Victims Countermeasure Committee' (Countermeasure Committee) argued that ABSTB should be classified as commercial claims. The committee stated, "The bonds we subscribed to were funds provided for the payment of Homeplus's goods," adding, "If the bonds subscribed by the victims are classified as commercial claims, they can be recovered, but if they become financial claims, they quickly turn into worthless bonds, causing us anxious days."

Regarding MBK Partners, the private equity fund and largest shareholder of Homeplus, the committee claimed that they, along with credit card companies, deliberately orchestrated this situation. They explained, "The ABSTB issued based on Homeplus's accounts receivable were issued through Hyundai Card and Lotte Card on the 25th of last month," and "When the credit rating dropped on the 28th of the same month, a surprise corporate rehabilitation petition was filed at midnight on the 3rd of this month." They added, "It was clearly prepared meticulously at least several weeks in advance."

The committee asserted, "Lotte Card's major shareholder is MBK, the owner of Homeplus, holding about 68% of the shares," and "We were deceived in a scheme orchestrated by Homeplus, Hyundai Card, Shinhan Card, Lotte Card, and MBK." They emphasized, "Following the decision to commence Homeplus's rehabilitation, victims will continue to suffer losses, including 1.14 billion won that matured first and 32.4 billion won on March 10, with total damages expected to reach around 400 billion won."

In particular, the committee criticized MBK for what they called a 'muk-twi' (eat-and-run) act. The committee said, "Chairman Kim Byung-joo of MBK and CEO Kim Kwang-il of Homeplus neglected efforts to devise self-rescue plans and hurriedly sought corporate rehabilitation to wipe out debts at once and carry out an eat-and-run scheme," calling it "a malicious tactic that threw the financial market into chaos."

Finally, the committee urged, "The Financial Supervisory Service and the government must provide relief so that victims can recover the money they have saved over their lifetimes for retirement, home purchases, and their children's weddings," emphasizing, "The government and financial authorities must classify ABSTB as commercial claims."