Rep. Min Byung-deok of the governing Democratic Party has called for National Assembly hearings on the Home Plus cases and the arrest of MBK Partners Chairman Michael Byungju Kim. Photo courtesy of Rep. Min Byung-deok
Sept. 3 (UPI) — South Korea’s governing Democratic Party said Wednesday that it will push for National Assembly hearings this month on the troubles facing debt-laden Home Plus, the country’s No. 2 discount chain, and its owner MBK Partners, one of Asia’s leading private equity funds.
Rep. Min Byung-deok of the Democratic Party said that lawmakers should act quickly. He heads the party’s committee designed to protect the rights of economically vulnerable groups.
“We will try to move forward with hearings regarding Home Plus in September. Since the parliamentary inspection is slated for October, this month is the deadline to do so,” Min told UPI in a phone interview.
“We plan to summon MBK Chairman Michael Byungju Kim and executives from both MBK and Home Plus. Toward that end, we will ask for the cooperation of the opposition People Power Party,” he added.
The Democratic Party has accused MBK of driving Home Plus into decline by prioritizing its own benefits over the retailer’s financial health.
The People Power Party, however, has been cautious about the proposal, arguing that the legislature should wait for the outcome of police and prosecution probes.
Against this backdrop, Rep. Min pressed prosecutors to speed up their investigation into the case and arrest Kim.
“The MBK scandal is not just an issue for one retail company. It is a grave crime that threatens the very foundation of our national economy and erodes trust in the financial markets,” the lawmaker commented.
“The prosecution must act without delay to arrest Chairman Kim and other MBK executives to show the public results through a swift and thorough investigation,” he said.
In 2015, MBK acquired Home Plus from Tesco in a $5.1 billion deal. Since 2021, however, the retail chain has suffered consecutive annual losses, prompting it to seek court-supervised corporate rehabilitation this March.
MBK, having waived its rights to 2.5 trillion won ($1.8 billion) in common equity, is now focused on facilitating a sale, though Home Plus has yet to secure a new buyer.