MBK's Kim Byung-joo Reported to Police by Homeplus Investment Victims Who Visited His Home

Homeplus Investors Post Flyers at Kim Byung-joo's Residence
"Expressing Desperation... Did Not Knock on the Door"
"Victims Unable to Sleep Even for a Moment"

Amid ongoing repercussions from the Homeplus corporate rehabilitation crisis, it has been reported that Kim Byung-joo, chairman of MBK Partners, has filed a complaint accusing investors in Homeplus Asset-Backed Short-Term Bonds (ABSTB) of threats. Yonhap News reported on the 15th that "the Emergency Countermeasures Committee for Victims of Homeplus Goods Purchase Short-Term Bonds (ECC) received an official letter from the Yongsan Police Station in Seoul on the 9th requesting cooperation in investigating the threat report."

Flyers posted by the Homeplus Goods Purchase Flyer Victims Emergency Response Committee on the parking lot wall and in front of the entrance door of Chairman Kim Byung-joo's residence of MBK Partners. Emergency Response Committee

The ECC reportedly posted A4-sized flyers containing protest messages against the fraudulent issuance of Homeplus ABSTB on the parking lot wall and in front of the entrance door of Chairman Kim’s residence on the morning of the 7th. It appears that Chairman Kim’s side perceived this as a threat and filed a report. The ECC stated, "The content expressed the victims’ desperation or emotions," adding, "We did not ring the doorbell or knock on the door to avoid disturbing the peace and quiet of the household. There was no sign of anyone inside, and no one came out to protest or respond."

The ECC’s situation room chief and others are scheduled to appear at the police station for questioning. The ECC said, "Since the initiation of Homeplus’s rehabilitation procedure on the 4th of last month, the victims of the short-term bonds have not been able to sleep properly even for a moment," and added, "It is bewildering that a peaceful appeal by the aggrieved victims to the home of Kim Byung-joo, the owner of Homeplus, was suddenly met with a threat report."

They continued, "Chairman Kim is suspected of conspiring to issue fraudulent bonds," and added, "It is laughable how he infringes on the bondholders’ rights to reclaim 401.9 billion KRW while not allowing even the slightest infringement on his own rights." The ECC plans to hold a rally titled 'Condemnation of MBK Kim Byung-joo’s Fraudulent Rehabilitation and Fraudulent Bond Issuance' in front of MBK’s headquarters in Jongno-gu, Seoul, at 11 a.m. on the 17th.

Members of the Homeplus branch of the Mart Industry Union under the National Service Industry Labor Union Federation held an expanded executive resolution rally on the 14th in front of D Tower, where MBK's office is located, in Jongno-gu, Seoul, shouting slogans such as "MBK must take responsibility for Homeplus corporate rehabilitation." Photo by Yonhap News

Homeplus, the second-largest large-scale supermarket chain in South Korea, initiated proactive corporate rehabilitation procedures on the 4th of last month. On the 11th, the Seoul Rehabilitation Court’s Rehabilitation Division 4 (Presiding Judge Jung Jun-young) announced that it had received a creditor list amounting to 2.7 trillion KRW from Homeplus the previous day. The creditor list is a document that organizes how much the company owes to which creditors, with secured rehabilitation claims totaling 26.9 billion KRW and rehabilitation claims amounting to approximately 2.6691 trillion KRW.

Chairman Kim reportedly donated personal funds to Homeplus last month and provided a loan guarantee worth 60 billion KRW on the 10th. However, confusion among investors and workers surrounding Homeplus continues unabated. On the 15th, Democratic Party lawmakers from the National Assembly’s Political Affairs Committee held a press conference at the National Assembly, urging, "MBK Partners should promptly establish a concrete repayment and Homeplus normalization plan, including personal fund contributions, and report it to the National Assembly."

They pointed out, "The anxiety caused by the Homeplus crisis, triggered by the unprecedentedly hasty corporate rehabilitation application, is not subsiding," and noted, "The actual amount of funds needed to normalize Homeplus exceeds 2 trillion KRW, whereas the amount of loan guarantees provided by MBK Chairman Kim Byung-joo last week was only 60 billion KRW." They also stated, "There is no concrete plan for creditor repayment or contributions toward Homeplus normalization," and argued, "Whether Chairman Kim truly intends to contribute personal funds or is merely trying to minimize responsibility for bond repayment through short-term bonds remains unclear. The longer this drags on, the greater the distrust will become."

Earlier, in an annual letter sent to investors on the 24th of last month, Chairman Kim explained, "Homeplus, one of our oldest and largest investments, filed for corporate rehabilitation procedures in early March," adding, "This was an unavoidable decision due to a contraction in working capital liquidity caused by a downgrade in credit rating."

He further stated, "We recognize that there are various stakeholders in the rehabilitation process, some of whom may be placed at a disadvantage compared to equity holders," and added, "We have announced measures to consider the welfare of all stakeholders and fulfill our social responsibilities, and we are sharing that responsibility through personal contributions (meaning personal fund contributions)."

This content was produced with the assistance of AI translation services.