Home Plus crisis sparks political backlash against Korea’s top private equity firm

SEOUL, Aug. 11 (UPI) — South Korea’s leading private equity company MBK Partners said the troubles of its subsidiary Home Plus, the country’s No. 2 discount chain, were not its fault.”The management crisis at Home Plus is due to structural changes in the industry,” MBK said in a statement last week, refuting allegations that the excessive loans and asset sales under its ownership resulted in the retailer’s decline.

Citing a report from Samil PricewaterhouseCoopers, MBK pointed to rising minimum wages, higher rent and the growth of e-commerce companies as key headwinds. In other words, it framed the difficulties of Home Plus as part of a broader industry trend.

In response, politicians and Home Plus union leaders flatly dismissed the claims.

“Home Plus reduced the number of supermarkets and its debt ratio once topped 1,400%. This is typical of the way MBK conducts business with its acquired companies,” Rep. Min Byung-duk of the governing Democratic Party told UPI.

“If the adversity of Home Plus was caused by industry-wide challenges, why are its rivals like E-Mart and Lotte Mart still doing well? MBK’s comments are not true, and we’re preparing for parliamentary hearings on the issue,” he said.

※ Please refer to the article: Home Plus crisis sparks political backlash against Korea’s top private equity firm – UPI