[Edaily Marketin Reporter Hur Jieun ] It has been confirmed that Kim Byung-ju, Chairman of MBK Partners, is in discussions regarding partial principal repayment and the provision of additional collateral for the 50 billion won emergency operating loan (DIP) that Woori Investment & Securities—an affiliate of Woori Financial Group—provided to Homeplus last March. This move is interpreted as financial institutions that extended the loan beginning to recover their funds following the termination of Homeplus’s rehabilitation proceedings last month.

According to the investment banking (IB) industry on the 25th, Chairman Kim Byung-ju is reportedly in discussions to adjust certain terms regarding repayment and collateral for the 50 billion won loan extended by Woori Investment & Securities—part of the 100 billion won in funds raised using his personal assets and injected into Homeplus. Specific details have not been confirmed.

Previously, in March, Woori Investment & Securities provided 50 billion won in the form of a loan as part of the 100 billion won Homeplus DIP financing led by MBK Partners. At the time, these funds were secured to cover urgent operating expenses—such as paying Homeplus employees’ salaries and settling payments to suppliers—following the Seoul Bankruptcy Court’s decision to extend the deadline for approving the reorganization plan. It was reported that MBK executives, including Chairman Kim and Vice Chairman Kim Kwang-il, borrowed the funds from financial institutions using personal assets, such as their homes, as collateral.

Financial institutions that had previously provided DIP financing to Homeplus have also begun demanding repayment of principal and interest from Chairman Kim. Private equity fund (PEF) manager Curious Partners provided Homeplus with a 60 billion won DIP loan in May of last year. However, after the Seoul Bankruptcy Court decided to terminate Homeplus’s reorganization proceedings on the 3rd of last month, Curious Partners declared a loss of the benefit of the term (EOD) on the loan, triggering a repayment obligation for Chairman Kim and others who had provided joint and several guarantees. Accordingly, the total amount Chairman Kim and his associates must repay is reported to be approximately 66 billion won, including both principal and interest.

This repayment effort is taking place as Chairman Kim and MBK Partners recently provided a full joint and several guarantee for a new 200 billion won DIP loan provided by Meritz Financial to normalize Homeplus’s operations. The financial liabilities borne by Chairman Kim and MBK during Homeplus’s corporate rehabilitation process are reported to total 600 billion won, including previous support and the recent additional joint and several guarantee.

An industry insider explained, “Chairman Kim’s financial obligations related to Homeplus, which had previously taken the form of guarantees or personal asset collateral, are now being converted into actual cash repayments.”