The chairman of MBK Partners, Kim Byung-ju, along with three other senior executives, are facing a hearing this week regarding potential arrest warrants linked to the controversial sale of short-term bonds by Homeplus Co. The Seoul Central District Court is set to convene on Tuesday following a request by prosecutors for the arrest of Kim and other executives, including a co-chief executive of Homeplus, on charges of fraud and violating the Capital Markets Act. This legal development is anticipated to impact the ongoing dispute between MBK Partners and Korea Zinc Co.
A ruling from the court could significantly influence the power struggle between MBK Partners and Korea Zinc, the world’s largest zinc smelter, over management control. Observers suggest that Korea Zinc Chairman Choi Yun-beom might gain an advantage in the battle for management control against an alliance formed by the company’s major shareholder, Young Poong Corp., and MBK Partners. Notably, Korea Zinc recently announced plans for a substantial investment in a critical metals refinery in Tennessee in collaboration with the U.S. government.
The proposed joint venture includes transferring a 10 percent stake to the new entity, a move that is expected to strengthen Choi’s position within the company. Meanwhile, Kim Byung-ju’s involvement in legal issues related to Homeplus could impact his standing. Homeplus, a financially troubled discount store chain, has submitted a rehabilitation plan to the bankruptcy court, which has received no objections from creditors. The plan focuses on business reorganization, including a merger and acquisition process to identify a new owner post-court approval.
Creditors, represented by Meritz Securities Co., have expressed no concerns about the rehabilitation program, which involves securing emergency operating funds, closing unprofitable outlets, divesting non-core units, and staff relocation. The Homeplus rehabilitation initiative aims to streamline operations and ensure financial stability moving forward.
