[2025 Audit] Min Byungdeok: "Kim Byungjoo, MBK Chairman, Must Take Proper Social Responsibility"

Chairman Kim Byungjoo Appears as Witness at National Assembly Audit for the First Time
Lawmakers Criticize Over Homeplus and Lotte Card Issues

Kim Byungjoo, chairman of private equity fund (PEF) manager MBK Partners, which has come under fire due to the Homeplus rehabilitation filing and the Lotte Card personal information leak incident, appeared for the first time at a National Assembly audit and faced criticism.

At the National Assembly's Political Affairs Committee audit on the 14th, Min Byungdeok, a lawmaker from the Democratic Party of Korea, criticized Chairman Kim, insisting that he should take more explicit responsibility. Min stated, "Vice Chairman Kim Kwangil and Chairman Kim Byungjoo of MBK Partners claim that the reason for Homeplus's rehabilitation filing in early March this year was a sudden credit rating downgrade, but according to testimony from former Homeplus executives, the reality is different. They failed to repay existing debts, extended them at an interest rate of 15 percent, and issued hundreds of billions of won in asset-backed short-term bonds (ABSTB). This is closer to fraud than to a simple default," he pointed out.

Min also said, "According to internal materials from the National Pension Service's Alternative Investment Committee, MBK Partners discussed making profits of more than 10 billion won each year by selling off multiple Homeplus stores after the acquisition. They viewed Homeplus not as a retail company but as a bundle of real estate assets, planning to sell off real estate to generate cash flow and extract profits," he criticized.

In response, Chairman Kim Byungjoo said, "I will do my utmost to fulfill my social responsibility regarding Homeplus."

Officials from financial authorities also gathered at the session to share their views. Kwon Daeyoung, Vice Chairman of the Financial Services Commission, stated, "It seems MBK needs to adopt a more socially responsible stance. I believe this incident should serve as an opportunity to review the pros and cons of the PEF system and implement necessary institutional improvements." Lee Sehoon, Senior Deputy Governor of the Financial Supervisory Service, said, "A prosecution investigation will soon take place, and the facts regarding the alleged intentional issuance of short-term bonds before the rehabilitation filing will be clarified."

This was the first time Chairman Kim appeared at a National Assembly audit. In the past, as the head of the country's largest PEF manager, he was called to attend audits when controversies arose regarding portfolio companies, but he had submitted written explanations for his absence and did not attend.

Kim Byungjoo, chairman of MBK Partners, is responding to lawmakers' questions at the National Assembly's audit of the Fair Trade Commission, Personal Information Protection Commission, and others held by the Political Affairs Committee on the 14th. On the left is Kim Kwangil, CEO of Homeplus. 2025.10.14 Photo by Kim Hyunmin