Michael ByungJu Kim, co-founder, partner and chairman of Northeast Asia-focused private equity firm MBK Partners Ltd., is expected to leverage personal wealth to pay suppliers to Homeplus Co., South Korea’s major retailer under court protection.“Chairman Kim will come up with a financial support plan to pay small and medium-sized (Homeplus) suppliers without delay,” read a statement released by MBK on Sunday, adding that the PEF is currently evaluating the total payment amount to determine the payment size and methods.
The move, which came as a surprise, met a backlash from the market as Homeplus had actively sold short-term debts in the capital market until the very last minute before filing for the court protection without notifying investors of the retailer’s financial difficulties.
Such high societal pressure, which is suspected to have led the MBK chairman to leverage personal wealth to bear financial burden, is somewhat justified, whereas some people argued that it is not necessary to drive the asset manager operating funds of limited partners to the wall beyond legal responsibility.
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