The ongoing dispute between MBK Partners and Meritz Financial Group has led to the cancellation of Homeplus’s rehabilitation process. This conflict stems from a deep-seated disagreement over whether Chairman Kim provided a personal guarantee and whether MBK has the capacity to support him.
One of the key points of contention is whether Chairman Kim made a personal guarantee. MBK claims that he did, stating, “Chairman Kim said, ‘I will guarantee it.’” However, Meritz disputes this, asserting, “No actual guarantee was ever made.” Furthermore, Meritz argues that since Chairman Kim has substantial personal assets, he should use them to provide support. On the other hand, MBK insists that their support capacity has been exhausted.
The opposing claims have created a deadlock, with no sign of compromise. The court’s deadline for resolution is less than two weeks away, adding pressure to an already tense situation.
◇ Personal Guarantee: “He Said He Would” vs. “It Was Never Done”
According to the Seoul Rehabilitation Court’s decision, it is true that MBK and Chairman Kim expressed intent to provide a personal joint guarantee. However, this was conditional on Meritz providing a 200 billion Korean won loan. MBK and Chairman Kim Byung-joo officially submitted to the court that if Meritz provided 200 billion Korean won, they would guarantee 100 billion Korean won of it.
Yet Meritz never intended to provide the 200 billion Korean won. Without agreement on the precondition, the guarantee never materialized. A Meritz source stated, “A guarantee is a commitment to the creditor. Submitting intent in a court document does not constitute an executed guarantee.”
Meritz’s precondition was for MBK or Chairman Kim to cover 100 billion Korean won themselves, with Chairman Kim personally guaranteeing the remaining 100 billion Korean won. Only then, Meritz claims, could it provide the remaining 100 billion Korean won as a loan.
However, MBK also refuses to cover 100 billion Korean won. An MBK representative retorted, “Meritz is essentially saying it won’t contribute a single won. If creditors refuse to compromise in rehabilitation, bankruptcy becomes inevitable—and Meritz is making no concessions.”
In fact, Meritz lent Homeplus 1.3 trillion Korean won in May 2024 through refinancing. Since then, it has not injected new funds. It has since recovered 256.1 billion Korean won, including 134.8 billion Korean won in principal and 121.3 billion Korean won in interest and fees.
Meritz holds 64 Homeplus stores as collateral, valued at 1.56 trillion Korean won. MBK argues, “If liquidated, Meritz would exercise its collateral rights and profit 500 billion Korean won beyond its principal. This is why Meritz secretly desires liquidation.”
Meritz has countered, “This calculation falsely equates unrealized valuation with cash gains. Collateral value could fall below principal during liquidation.”
◇ “MBK Has Assets” vs. “Support Capacity Exhausted”
In March 2025, Chairman Kim and Vice Chairman Kim Kwang-il pledged their Seoul Hannam-dong residences as collateral for 100 billion Korean won in emergency DIP (debtor-in-possession) financing. A month later, in April, they provided personal guarantees for 60 billion Korean won in DIP funds from Curious Partners and waived their right to reimbursement. They also contributed 40 billion Korean won in personal funds.
MBK claims the total funds directly contributed or guaranteed by MBK and Chairman Kim since the rehabilitation began amounts to 400 billion Korean won. Some of these funds reverted to repayment obligations upon the rehabilitation’s cancellation.
Curious Partners declared an event of default (EOD) on the 60 billion Korean won provided to Homeplus on the 3rd, demanding immediate repayment. It is reported that Chairman Kim and Vice Chairman Kim, who had guaranteed the loan, are now facing demands for cash repayment.
If bankruptcy follows, other financial institutions may also file claims against MBK’s funding commitments. MBK thus insists, “We have no further capacity to support.”
However, Meritz and creditors argue that of the 400 billion Korean won in support, 200 billion Korean won was a payment guarantee for existing interest, and the 160 billion Korean won in DIP funds were guarantees, not cash. They claim only 40 billion Korean won in personal funds was actually injected.
Meritz pressures Chairman Kim by citing his estimated net worth—nearly 14–15 trillion Korean won (Forbes estimates 14.6 trillion Korean won). They argue that 200 billion Korean won represents just 1–2% of his assets, so as a major shareholder, he should contribute personally.
However, Homeplus’s legal major shareholder is a special purpose company (SPC) established by MBK. The SPC is listed as the major shareholder on Homeplus’s shareholder registry. While Chairman Kim is the de facto controller, legally, liability is ambiguous.
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