MBK Partners, a private equity firm, is facing criticism for appointing its own personnel as the auditor of Homeplus, further consolidating its control over the retail giant's management. This move has raised concerns about potential conflicts of interest and the lack of independent oversight, which some attribute as a contributing factor to Homeplus's recent financial struggles.
According to financial industry sources on March 5, Homeplus appointed Chun Jun-ho, a managing director at MBK Partners, as its auditor in January of last year. Prior to this, Lee In-kyung, MBK Partners' Chief Financial Officer (CFO), held the same position.
The role of an auditor is to monitor whether directors are complying with laws and regulations, ensuring independence is crucial. Therefore, the Commercial Act mandates that listed companies with assets exceeding 2 trillion won establish an audit committee. A senior financial industry official expressed, "A company's auditor should be able to scrutinize overall management and offer candid advice. It's incomprehensible that an individual from the majority shareholder's side occupies the auditor position."
MBK has also deeply intervened in Homeplus's overall management. Kim Kwang-il, Vice Chairman of MBK Partners, has served as co-CEO of Homeplus since January of last year. Cha Young-soo, Managing Director, and Kim Jung-hwan, Partner at MBK Partners, are also registered as non-executive directors. Furthermore, Hwang Jung-hee, Vice President of Homeplus, is also considered an MBK figure, having worked at Orange Life (now Shinhan Life), a company previously owned by MBK Partners, before joining Homeplus in 2019.
The market is rife with discussions that MBK cannot evade responsibility for Homeplus's management failure, given its extensive control over the company's leadership and auditing. According to Korea Ratings, Homeplus recorded an accumulated operating loss of 157.1 billion won in the first three quarters (March to November) of the 2024 fiscal year. Investment banking (IB) industry insiders are even calling for Kim Byung-ju, Chairman of MBK Partners, to take responsibility for the situation, including personal asset contributions.
In response, an MBK Partners representative stated, "It is common practice for shareholders to appoint auditors in non-listed companies."
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