"Sharing Responsibility through Personal Contributions"
Kim Byung-joo, Chairman of MBK Partners, recently stated in a letter to institutional investors (LPs) that "we are doing our best to recover the value of our shares while maintaining control over the operation of Homeplus."
According to the investment banking (IB) industry on the 2nd, Chairman Kim said in the 2025 annual letter released on the 24th of last month, "Homeplus filed for rehabilitation procedures in early March," adding, "This was an unavoidable decision due to the tightening of working capital liquidity caused by the downgrade of its credit rating."
Implying Advantage for Preferred Share Investors Including National Pension Service
He candidly acknowledged, "There has been quite negative media coverage regarding Homeplus's rehabilitation process," and added, "We recognize that there are multiple stakeholders involved in the rehabilitation process, and some stakeholders may be placed at a disadvantage compared to equity holders."
This means that LPs who invested in common shares of Homeplus may suffer more disadvantages than those who invested in preferred shares. Among Homeplus's major investors, the National Pension Service invested in redeemable convertible preferred shares (RCPS), while MBK, Canada Pension Plan Investment Board (CPPIB), Public Sector Pension Investment Board (PSP Investments), and Singapore sovereign wealth fund Temasek invested in common shares.
He further explained, "MBK Partners has announced measures to consider the welfare of all stakeholders and fulfill social responsibility, and is sharing that responsibility through personal contributions (meaning private funds)."
"Maximizing Potential Value through Governance Improvement at Korea Zinc"
Regarding Korea Zinc, which is involved in a management dispute with Chairman Choi Yoon-beom's side, he said, "MBK's investment logic is based on the belief that improving governance through professional management and a shareholder-centered board of directors will maximize the potential value of this global company," adding, "We see this deal as a turning point that will lead to the activation of governance-focused deals in the future."
Chairman Kim explained that the core of the Korean government's 'Corporate Value-up Program,' announced a year ago, is "to enhance shareholder value through corporate governance improvement and innovation in market practices." He added about MBK's investment in Korea Zinc, "It attracted attention with sensational headlines such as a 'hostile takeover' of a world-class smelting company. However, the essence of this deal aligns with the government's corporate value-up program and governance reform."
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