Michael ByungJu Kim, the co-founder, partner and chairman of Northeast Asia-focused private equity firm (PEF) MBK Partners Ltd., is expected to leverage his 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, which added that the PEF is currently evaluating the total payment amount to determine the payment size and methods.
The move, which came as a surprise, caused a market backlash as Homeplus had been selling short-term debts in the capital market until immediately before filing for court protection, without notifying investors of the retailer’s financial difficulties.
Such intense societal pressure, which is suspected of having led the MBK chairman to leverage his personal wealth to bear the financial burden, is widely supported, although some observers have argued it is not necessary to drive the asset manager operating the funds of limited partners to the wall, beyond its legal obligation.
The story "MBK chairman to leverage own funds to pay Homeplus suppliers" has 606 words across 28 sentences, which will take approximately 3 - 6 minutes for the average person to read.
Which news outlet covered this story?
The story "MBK chairman to leverage own funds to pay Homeplus suppliers" was covered 1 weeks ago by Korea Economic Daily, a news publisher based in South Korea.
How trustworthy is 'Korea Economic Daily' news outlet?
Korea Economic Daily is a fully independent (privately-owned) news outlet established in 1964 that covers mostly economy news.
The outlet is headquartered in South Korea and publishes an average of 3 news stories per day.
It's most recent story was published ago.
What do people currently think of this news story?
The sentiment for this story is currently Neutral, indicating that people are not responding positively or negatively to this news.
How do I report this news for inaccuracy?
You can report an inaccurate news publication to us via our contact page. Please also include the news #ID number and the URL to this story.
