MBK Partners urged to repay debts owed to individual investors

Published: Wednesday, July 9, 2025 at 1:42 pm

MBK Partners Faces Calls to Repay Investors Amid Home Plus Troubles

A legal battle is brewing in South Korea as a law firm representing investors is urging MBK Partners, a financial company, to repay debts related to asset-backed bonds tied to the struggling discount chain, Home Plus. The law firm, LawVax, filed a criminal complaint against senior executives of MBK and Home Plus, including MBK Chairman Michael Byungju Kim and Home Plus co-CEOs Kim Kwang-il and Joh Joo-yun.

The complaint alleges that these executives issued commercial papers and short-term bonds, knowing Home Plus lacked the financial capacity to repay them. This has resulted in approximately $400 million in losses for investors. LawVax attorney Jang Jin-seok claims Home Plus relied on short-term funding to stay afloat, attracting individual investors with asset-based bonds. He points to the company's subsequent filing for corporate rehabilitation shortly after a credit rating downgrade as evidence of a lack of intent to repay debts.

Home Plus, however, disputes these claims. A spokesperson stated the company made efforts to improve its financial standing, including reducing debt ratios. They attributed the company's struggles to the COVID-19 pandemic and the rise of e-commerce. The company's debt ratio improved to 462% this January, compared to 1,506% in the same period of 2024.

MBK Partners acquired Home Plus from Tesco in 2015 for $5.1 billion. The company has faced consecutive annual losses, particularly since 2021. The decline has been attributed to the pandemic and competition from online retailers. Home Plus's corporate rating was downgraded in late February, followed by the filing for corporate rehabilitation.

Jang also criticized Kim Kwang-il for holding multiple positions across various companies, mostly MBK affiliates. He expressed skepticism regarding MBK's efforts to sell Home Plus to avoid liquidation, questioning why MBK wouldn't take over operations again if the company truly believed in its potential. Home Plus maintains that the sale is aimed at saving employees, suppliers, and stakeholders, and that MBK has made significant sacrifices to support this.

BNN's Perspective:

The situation highlights the complexities of private equity investments and the potential risks faced by individual investors. While the legal proceedings unfold, it's crucial to balance the interests of all parties involved, including investors, employees, and the company itself. A fair resolution that addresses the financial losses while considering the broader economic impact is essential.

Keywords: MBK Partners, Home Plus, investor losses, asset-backed bonds, corporate rehabilitation, Michael Byungju Kim, Kim Kwang-il, Joh Joo-yun, debt, financial trouble, South Korea, retail, bankruptcy

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