Kim Byung-joo MBK Chairman Provides 60 Billion Won Loan Guarantee to Homeplus

Personal Funds Also Gifted Last Month

Kim Byung-joo, chairman of MBK Partners, is set to provide a loan guarantee worth 60 billion won to Homeplus, a major retail company undergoing corporate rehabilitation procedures.

Yonhap News

According to the investment banking (IB) industry on the 10th, Curious Partners, a private equity fund (PEF) specializing in restructuring, has agreed to provide Homeplus with a 60 billion won DIP financing (Debtor-In-Possession financing) loan. The guarantee will be provided by Chairman Kim in a personal capacity, meaning if Homeplus fails to repay, Chairman Kim will be personally responsible. The loan has a maturity of three years and an interest rate of 10% per annum.

DIP financing refers to new funding provided during corporate rehabilitation procedures. It grants priority in repayment order to incentivize funding supply and helps secure operating funds to successfully complete court receivership. However, court approval is required. Since DIP financing is given priority over other creditors, it may cause opposition from the creditor group during the approval of the rehabilitation plan.

Separately from the loan guarantee, Chairman Kim reportedly gifted personal funds to Homeplus last month. The exact amount has not been disclosed.

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