MBK Partners Vice Chairman Kim Kwang-il Set to Step Down as ‘Homeplus Administrator’ [fn Market Watch]

[The Financial News] After all shares held by MBK Partners, Homeplus’s former largest shareholder, were canceled, the company’s rehabilitation management structure also entered a phase of reorganization. This comes as the Seoul Rehabilitation Court has begun the process of appointing a third-party administrator and Kim Kwang-il, MBK Partners’ vice chairman, has also expressed his intention to step down as administrator. With the former largest shareholder having lost its status as a shareholder, changes are expected in the management structure that included its representatives.
According to investment banking (IB) industry sources on the 9th, the Seoul Rehabilitation Court is seeking the views of key creditors and other stakeholders regarding the appointment of a new administrator for Homeplus. The court is considering whether to change the current arrangement, under which Vice Chairman Kim and Homeplus CEO Cho Ju-yeon serve jointly as administrators. Vice Chairman Kim is also reported to have recently expressed his intention to resign as administrator.
A senior IB industry source added, “I understand that the rehabilitation court has begun the process of selecting a third-party administrator and is seeking relevant views from creditors and other stakeholders. However, I understand that Vice Chairman Kim will retain his position as administrator until the separate process to appoint a new administrator is completed.”
This process comes amid the complete extinguishment of the former largest shareholder’s stake in Homeplus. Earlier, Korea Corporate Investment Holdings, then Homeplus’s largest shareholder, canceled without compensation all of the approximately 2.4 million common shares it held on the 14th of last month. As a result, the MBK side ceased to be a shareholder of Homeplus.
Controversy over Vice Chairman Kim’s position as administrator has continued. Political circles and labor unions have questioned whether it is appropriate for a representative of the former largest shareholder to continue serving as administrator during Homeplus’s rehabilitation process and have called for him to step down.
Another IB industry source explained, “Regarding Vice Chairman Kim’s role as administrator, political circles and labor unions have consistently called for him to step down. I understand this as a standard procedure given that all the common shares have also been extinguished.”
Vice Chairman Kim was appointed alongside CEO Cho as one of Homeplus’s co-CEOs in January 2024. After Homeplus entered corporate rehabilitation proceedings in March last year, he carried out rehabilitation work as a co-administrator.
Administrators of companies undergoing rehabilitation proceedings typically oversee and dispose of company assets under court supervision and manage the rehabilitation process. The court is expected to consider whether to appoint a third-party administrator and how to change the existing co-administrator arrangement, based on the views of creditors and other stakeholders. Vice Chairman Kim is expected to retain his current position until the relevant procedures, including the appointment of a new administrator, are completed.
IB industry sources said the reorganization of the management structure could provide an opportunity to wind down the participation of representatives of the former largest shareholder in managing the rehabilitation process. However, whether the administrator is actually replaced and what effect this may have on the rehabilitation proceedings will depend on the court’s final decision.
[email protected] Kim Gyeong-a Reporter