Euljiro Committee of Democratic Party Urges National Pension Service to Halt Investments in MBK and Meritz

Response to Reluctance Over Homeplus Support

The Euljiro Committee of the Democratic Party of Korea on July 9 urged the National Pension Service to halt investments in MBK Partners, the main shareholder of Homeplus, after MBK Partners and its largest creditor, Meritz Financial Group, were reluctant to provide emergency operating funds for the retailer, which is facing bankruptcy.

Min Byungduk, a Democratic Party lawmaker serving as the head of the Euljiro Committee, is speaking at a meeting between MBK Partners and Meritz executives for Homeplus revival held at the National Assembly Members' Office Building on the 9th. Photo by Hyunmin Kim

Min Byung-duk, a Democratic Party lawmaker and chairman of the Euljiro Committee, stated, "We urgently need about 100 billion won in emergency operating funds to put out the immediate fire. Although this is not a small amount, considering the profits MBK Partners and Meritz Financial have earned from Homeplus so far and the social trust they stand to lose in the future, it is not an amount they cannot handle."

However, MBK Partners and Meritz Financial Group have shown little willingness to support the revival of Homeplus. Meritz Financial Group said it would be able to provide support only after confirming with law firms, accounting firms, and the board of directors that there would be no breach of trust if Byung-ju Kim, Chairman of MBK Partners, offers a personal guarantee. According to Assemblyman Min, MBK Partners' position is that they will submit the guarantee documents for the 100 billion won only if Meritz Financial Group provides a 200 billion won loan.

Kim Nam-geun, a Democratic Party lawmaker, said after a meeting with Sung-joo Kim, Chairman of the National Pension Service, "If the Financial Supervisory Service imposes sanctions, it becomes a reason to withdraw investments and a basis for not making future investments. We have also received confirmation that, going forward, the National Pension Service will review and selectively invest in alternative investment funds, such as private equity funds, that are subject to social criticism."

Kim Yoon, a Democratic Party lawmaker, said, "Entrusted asset managers have caused losses to the National Pension Service, damaged the national economy, and created enormous consequences by pushing many citizens into unemployment. Stewardship activities and thorough management of entrusted asset managers must be institutionalized by law in the future."

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