[2025 National Assembly Audit] Kim Byungjoo: "M&A Is the Only Way to Save Homeplus... The Sale Must Succeed"

Chairman Kim Byungjoo Appeals at First National Assembly Audit
Liquidation Inevitable If Sale Fails
"Fifty-Fifty Chance of Success... The Sale Must Go Through"

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

Byungjoo Kim, chairman of MBK Partners, the largest private equity fund (PEF) manager in South Korea, appealed for help at his first appearance at a National Assembly audit, stating that selling Homeplus is the only way to save the company.

"Selling Homeplus Is the Only Way to Save It... Currently, the Probability Is Fifty-Fifty"

Chairman Kim made this assertion as a witness at the National Assembly Political Affairs Committee’s audit regarding the Homeplus situation on October 14. Although lawmakers from both the ruling and opposition parties demanded more concrete actions, such as additional capital injections, Chairman Kim emphasized that finding a new owner and selling Homeplus is the only viable solution to save the company.

In March, Homeplus filed for corporate rehabilitation at the direction of its majority shareholder, MBK Partners. During this process, the company is pursuing a pre-approval merger and acquisition (M&A) with court authorization. The plan is to secure a new owner before submitting the rehabilitation plan, aiming to ensure debt repayment, job security, and investor protection.

Yoodongsoo, a lawmaker from the Democratic Party of Korea, said, "When you met with the ruling party’s floor leader last month, you said you would actively pursue an M&A, but today you seem more pessimistic. If the sale fails, there will be many victims, so please also consider ways such as contributing personal funds to help those affected."

In response, Chairman Kim said, "The Homeplus M&A must not fail; it absolutely needs to succeed. Please help us as much as possible."

Kim Kwangil, vice chairman of MBK Partners and co-CEO of Homeplus, answered questions from lawmakers about the likelihood of a successful M&A by saying, "At this point, I would say it is about fifty-fifty. We are at the stage where final decision-makers at the owner level could make a decision, but we have not been able to clear the last hurdle."

He added, "If we receive letters of intent (LOIs) from buyers by the end of this month and submit them to the court, we will have grounds to request an extension of the deadline for submitting the rehabilitation plan, which is currently set for November 10, 2025."

Previously, MBK and Homeplus abandoned the "stalking horse" method of selecting a preferred bidder and instead announced a public competitive bidding process on October 2. Applications will be accepted until the end of this month. If no potential buyer is found during this period, Homeplus may face liquidation by court order in the worst-case scenario.

Lawmakers Criticize... Chairman Kim Byungjoo Says "Deeply Feels Social Responsibility"

Byungjoo Kim, chairman of MBK Partners, is appearing as a witness at the National Assembly's Political Affairs Committee hearing on the Fair Trade Commission and the Personal Information Protection Commission held on the 14th. 2025.10.14 Photo by Hyunmin Kim

Lawmakers from both parties criticized MBK for only stating the necessity of a sale without providing concrete plans or details about the current situation. This criticism came just ten days after MBK had told political figures that there were interested buyers, only to abruptly switch to a public competitive bidding process.

Kim Namgeun, a lawmaker from the Democratic Party of Korea, said, "November 10 is the final deadline for the pre-approval M&A, and with only about 20 days left, is it really possible to find a new buyer through a public offering? From what I have heard, there are no interested buyers, so wasn’t liquidation the plan from the start?"

Chairman Kim Byungjoo’s call for help with the M&A was also criticized. Lee Inyoung, a lawmaker from the Democratic Party of Korea, said, "What have you been doing until now that you come to the National Assembly audit and ask the National Assembly and the government for help with the M&A? This is an insult to the National Assembly."

Meanwhile, when lawmakers pressed Chairman Kim Byungjoo on the responsibility of the majority shareholder in the Homeplus situation, he clarified that as general partner (GP) of MBK Partners, the roles of each partner-level manager are strictly divided, and his own role is to secure funding for all the funds. Nevertheless, he reiterated his position that he must bear social responsibility.

When Park Sanghyuk, a lawmaker from the Democratic Party of Korea, asked if he felt it was unfair to be summoned to the National Assembly and criticized by the public due to the Homeplus situation, Kim replied, "I am willing to fulfill my social responsibility. It is my company, and I believe I must bear social responsibility."

However, when asked about additional personal contributions or financial support from MBK, he answered, "I will try, but at present, both the company and I have limited financial capacity."