It appears that Kim Byung-ju, Chairman of MBK Partners, decided on an unprecedented personal fund contribution to support small businesses trading with Homeplus because he judged that the most vulnerable parties needed protection first. These small businesses are considered weaker compared to financial institutions like Meritz Financial Group, institutional investors such as the National Pension Service, and individual or corporate investors—including some wealthy individuals—holding securitized bonds. However, since neither Kim nor MBK has disclosed the specific support amount or timeline, Homeplus tenants and unions have responded lukewarmly, demanding “specific details.”

According to the investment banking (IB) industry on the 16th, MBK and Homeplus plan to identify the amounts owed to small business partners and expedite payments. So far, only the recipients have been determined; no decisions have been made regarding “when,” “how,” or “how much” of Kim’s personal funds will be utilized. Since Kim does not directly hold Homeplus shares, options like converting loans into common stock are limited. Drawing from past examples of owners contributing personal funds, possibilities such as purchasing Homeplus-issued bonds or participating in a capital increase have been mentioned.

Kim has long avoided responsibility for the financial troubles of companies like NEPA, D’Live, and Younghwa Engineering before Homeplus, arguing that he “only engages in investment, not management.” It is extremely rare for the majority shareholder of a private equity fund (PEF)—which typically invests in multiple companies for short-term gains before selling them—to contribute personal funds to support an invested company. At a press conference on the 14th, MBK Vice Chairman Kim Kwang-il also drew a line, stating that Kim Byung-ju’s personal contribution “is not a matter to be addressed at the Homeplus briefing.”

Nevertheless, it is interpreted that even Kim had no choice but to make a swift decision regarding the Homeplus crisis, which involves over 6,000 tenant businesses, nearly 20,000 employees, small and medium-sized suppliers, and individual investors.

MBK explained that the support targets small businesses among Homeplus suppliers and tenants whose payments have been delayed. Of the monthly payments Homeplus makes—approximately 300 billion won to suppliers and 50 to 70 billion won to tenants—a significant portion involves large and mid-sized companies, which are excluded from this support. Among tenants, large chains like Daiso are also excluded, leaving smaller businesses as the focus. It is expected that Kim will cover part of the still-unsettled January payments for these entities. Some in the industry estimate his contribution could range from 100 billion to 200 billion won.

Tenants have expressed frustration over the lack of clarity on the specific support amount, especially since their daily sales are transferred to Homeplus. Distrust has grown as some businesses, despite Homeplus claiming payments have been made, report not receiving funds. Consequently, tenants are demanding a shift from the current system—where all sales are sent to Homeplus, which then deducts rent and fees before settling the remainder—to one where they retain sales and only pay fees.

Kang Kyung-mo, Vice Chairman of the Homeplus Tenant Association, said, “We appreciate the personal fund contribution itself, but we want specifics on the criteria for defining small businesses. Homeplus claims it paid food and beverage vendors on the 12th and living goods vendors on the 13th, but it turns out they issued promissory notes, and we haven’t been settled yet.”

Lee Sung-won, Secretary-General of the Federation of Small and Medium Enterprises and Self-Employed, added, “Even at this moment, tenant sales are going to Homeplus headquarters. Many haven’t received January settlements yet, so we need the company to officially clarify how much has been settled and what the plan is moving forward.”

Additionally, Kim’s sudden decision to contribute personal funds is seen as partly aimed at appeasing major creditors like Meritz Financial Group and the National Pension Service. Securing creditor consensus is essential for drafting Homeplus’s rehabilitation plan. Creditors, blindsided by Homeplus’s abrupt filing for corporate rehabilitation, have raised strong objections and even threatened lawsuits. Some have openly demanded a substantial personal contribution from Kim.

In 2021, Kim and other MBK partners sold a 13% stake to Dyal Capital for 1.19 trillion won, funds tied to the firm’s operations, which creditors argue could justify investment in Homeplus. An institutional investor in Homeplus remarked, “Kim’s contribution was unexpected,” but added, “It would have been better if the amount could also benefit unsecured bondholders like those holding commercial paper and securitized bonds.”

By Reporters Im Se-won and Song I-ra