MBK Partners Chairman Michael ByungJu Kim has been named a parliamentary audit witness for a second consecutive year as lawmakers scrutinize the private equity firm’s handling of Homeplus.
The National Assembly’s Trade, Industry, Energy, SMEs and Startups Committee has called Kim to testify at Wednesday’s audit of the Ministry of SMEs and Startups. Questions are expected to focus on emergency business stabilization funding provided following Homeplus’ entry into court-led rehabilitation and losses incurred by merchants operating inside its stores.
During last year’s National Policy Committee audit, lawmakers questioned the chairman’s responsibilities as head of Homeplus’ controlling shareholder. An ongoing investigation into the retailer’s case could also feature in this year’s audits.
Beyond Homeplus, lawmakers could raise questions about Lotte Card’s dividend payments and financial difficulties at cable television operator D’Live.
Lotte Card approved a 38.2 billion won ($28.5 million) cash dividend last month, reportedly at MBK’s request. The decision has drawn scrutiny over shareholder payouts at an MBK-controlled company while Homeplus investors and suppliers face losses. It remains unclear whether lawmakers will address the payment during the audit.
D’Live, meanwhile, was recently ordered by the broadcasting regulator to submit a revised debt-ratio reduction plan within three months. The regulator declined to approve its initial proposal, finding that it lacked sufficiently concrete measures to improve the company’s finances.
silverstar@heraldcorp.com
