MBK Partners Apologizes to the Public, Pledges Additional 200 Billion Won Donation to Homeplus

On September 24, MBK Partners issued a public apology regarding the corporate rehabilitation of Homeplus. In addition to the existing 300 billion won in financial support, the company pledged an additional donation of 200 billion won, bowing its head in apology.

MBK Partners stated, "We sincerely apologize for causing great concern and disappointment to the public regarding Homeplus entering rehabilitation proceedings."

In front of a Homeplus store in Seoul on the 31st. Photo by Yonhap News Agency

The company added, "We deeply reflect on our failure to fulfill our social responsibility," and continued, "The corporate rehabilitation of Homeplus is not simply a financial failure. As the major shareholder of a company closely tied to the daily lives of the people, it has made us acutely aware of how gravely we have failed to fully carry out our heavy responsibilities."

MBK Partners previously decided to cancel 2.5 trillion won worth of common shares in Homeplus without compensation and provided a total of 300 billion won in financial support, including a personal contribution from the founder and joint guarantees. The company acknowledged, "We are well aware that this is still insufficient compared to the pain and disappointment we have caused the public."

Furthermore, MBK Partners announced additional measures to fulfill its social responsibility. To ease the financial burden on the acquirer during the pre-approval M&A process, the company pledged to donate up to 200 billion won to Homeplus, using a portion of MBK Partners' future operating profits.

With the additional 200 billion won donation on top of the existing 300 billion won in financial support, this represents the largest amount ever provided by a major shareholder for the normalization of a company in cases of corporate rehabilitation or workout.

The company also stated its commitment to do its utmost to ensure that the principal investment in the redeemable convertible preferred shares held by the National Pension Service can be recovered. In addition, MBK Partners announced the establishment of the "MBK Partners Social Responsibility Committee," which will include external experts with experience in public policy and industry, to ensure that all future investment activities are carried out based on the values of mutual growth and responsibility.

MBK Partners emphasized the social significance of Homeplus, stating, "Homeplus is the foundation for the livelihoods of countless workers, a base for partner companies and local communities, and an important pillar of the people's economy." The company added, "We will do our utmost to protect the livelihoods of Homeplus's 20,000 employees and 80,000 partner company workers."

The company further stated, "We will ensure that all future investment activities are conducted according to the principle of 'social responsibility,' and we will humbly accept the oversight and advice of external experts to approach the public and investors with greater transparency and a sense of responsibility."

MBK Partners concluded, "We once again deeply apologize for causing concern to the public, and we promise to fulfill our responsibilities to the end and transform ourselves into a truly changed global asset manager."