[2025 Audit] "No Negotiator, Just Stalling for Time?"...Homeplus Faces Deception Allegations

"Potential Buyer Emerges" → Switch to Open Bidding
Method Changed in Just Over Ten Days
Controversy Over Alleged "Exit After Liquidation" Raised at Political Affairs Committee Audit

Homeplus, which has entered the process of seeking a new owner after filing for corporate rehabilitation, has come under fire from the National Assembly over controversy surrounding its change of stance. Just over ten days after stating that there was a potential buyer during the pre-approval M&A process, the company switched to an open competitive bidding process. This has led to suspicions that Homeplus may ultimately be stalling for time with liquidation in mind.

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

On October 14, during the National Assembly's Political Affairs Committee audit on the Fair Trade Commission and the Personal Information Protection Commission, Assemblyman Kim Namgeun of the Democratic Party questioned Kim Byungjoo, Chairman of MBK Partners, and Kim Kwangil, Vice Chairman, who were present as witnesses. He said, "On September 19, you told Kim Byungki, the Democratic Party’s floor leader, that you were in negotiations with a strong candidate, but less than 20 days later you switched to an open bidding process. With November 10 as the final deadline for pre-approval M&A, do you really think you can find a new buyer through open recruitment with only about 20 days left?"

Assemblyman Kim further pressed, "From the beginning, you never intended to operate Homeplus, and you deceived us by saying you would sell if a buyer appeared, only to enter liquidation procedures at the last minute and make a quick exit. Upon investigation, it turns out there are no interested buyers. If you move to liquidation simply because no buyer appears, the National Assembly will not stand by idly."

Initially, Homeplus had pursued an M&A using a "stalking horse" method, seeking a preferred bidder since June, signing a conditional acquisition agreement, and then moving to an open bidding process. However, as there was no significant progress, Homeplus and its sale advisor, Samil PwC, switched to an open competitive bidding process on October 2. MBK, the private equity fund managing Homeplus, had mentioned the presence of a strong negotiation partner just before the Chuseok holiday, but the sudden shift to an open bidding process led to further questioning about whether there was ever a real negotiating party.

Kim Kwangil, Vice Chairman and Co-CEO of Homeplus, repeatedly refused to disclose the identity of the potential buyer, citing "business confidentiality," and stated, "It is difficult to comment." As a result, during the Political Affairs Committee audit, suspicions were repeatedly raised that MBK was weighing the timing of its "exit" (capital recovery) after proceeding with Homeplus’s liquidation process.

There was also criticism regarding MBK's announced plan to fulfill its social responsibility by donating up to 200 billion won to Homeplus, using a portion of MBK’s future operating profits, in order to ease the financial burden on prospective buyers. Assemblyman Yoo Dongsoo of the Democratic Party pointed out, "Aside from announcing the plan to provide 200 billion won to meet the conditions of potential buyers, what other efforts have you made? Just as when selling a house, you must meet the price the buyer wants for a transaction to occur, so too should you make efforts to meet the conditions for a buyer to acquire the company."