MBK Chairman Kim Byung-joo Invests Personal Funds... "Supporting Homeplus Small Business Payment Settlements" (Comprehensive)

"Minimizing Stakeholder Damage Through Rehabilitation Procedures"

Kim Byung-joo, chairman of MBK Partners, announced that he will contribute personal funds to ensure that small business owners supplying goods to Homeplus can receive their payment smoothly.

On the 16th, MBK Partners, a private equity fund (PEF) management company and shareholder of Homeplus, stated, "We will fulfill our social responsibility related to Homeplus's rehabilitation process," and added, "As part of this, Chairman Kim Byung-joo will arrange financial support to promptly pay the settlement amounts to small business partners expected to face difficulties," in a press release on the 16th.

After Homeplus's credit rating was downgraded at the end of last month, making it difficult to raise funds in the short-term money market, the company filed for corporate rehabilitation (court receivership) on the 4th. Controversy arose over MBK's responsibility as it was reported that funds were raised from individuals just before the rehabilitation filing, and Chairman Kim Byung-joo faced pressure to contribute personal funds.

In the statement, MBK Partners said, "Under the protection of the rehabilitation court, we will ensure that Homeplus operates normally and stably so that the damage to various stakeholders is minimized," and added, "We will facilitate smooth negotiations between all creditors, including those related to accounts payable securitization, and Homeplus."

Regarding the sudden rehabilitation filing, they defended, "Due to the sudden liquidity crisis, we judged that preemptive measures for normalization had to be taken before Homeplus went bankrupt, and the only method was the rehabilitation procedure."

MBK Partners apologized deeply, saying, "We sincerely apologize for causing concern to employees and various stakeholders due to Homeplus's rehabilitation process," and stated, "As a shareholder and investment management company, we humbly accept criticism and reproach directed at MBK Partners and will fulfill our social responsibility."