Meritz Financial Group, a major creditor of Homeplus, said it is reviewing up to 100 billion won in emergency operating funds, known as debtor-in-possession (DIP) financing, to support the retailer's management normalization. The group set the condition that guarantees from major shareholder MBK Partners and Chairman Michael Byungju Kim must be in place.
In a statement Tuesday, Meritz Financial Group said, "We are reviewing 100 billion won in emergency operating funds for Homeplus's management normalization and stable business activities," adding, "However, our position is that guarantees from MBK headquarters and major shareholder Chairman Michael Byungju Kim must be a prerequisite."
The review follows a request for financial support from lawmakers belonging to the Democratic Party's Euljiro Committee to resolve the Homeplus situation. Meritz explained that after meeting Tuesday with lawmakers including Yoo Dong-soo, Min Byoung-dug, Kim Nam-keun, and Lee Kang-il, it is confirming specific guarantee conditions regarding the financial support measures the lawmakers requested. The group's position is that guarantees from MBK headquarters and Chairman Michael Byungju Kim are essential due to legal constraints such as the duty of shareholder loyalty under the revised Commercial Act.
Meritz had previously maintained a cautious stance on providing an additional 100 billion won in funding, citing legal constraints such as the duty of shareholder loyalty and the duty of care. The judgment was that injecting additional unsecured funds while needing to recover existing loans as a creditor could burden shareholders and investors. However, considering the creditworthiness of Chairman Michael Byungju Kim and MBK, the group is understood to view support within the 100 billion won range as feasible and is assessing the guarantee conditions.
Meritz also emphasized that this support review is being conducted not only to normalize Homeplus's operations but also to protect partner companies and employees. With Homeplus undergoing corporate rehabilitation proceedings, related damage could spread if disruptions occur in payments to suppliers and employee wages.
"We recognize that protecting numerous stakeholders, including Homeplus employees and partner companies, is an important social role for financial institutions," a Meritz Financial Group official said. "If there are guarantees from MBK headquarters and Chairman Michael Byungju Kim, we will provide support."
