Home Plus Faces Liquidation as Lawmakers Demand Hearings

The Financial Supervisory Service confirmed Monday its committee met Thursday to deliberate disciplinary action against MBK related to Home Plus. The FSS did not disclose the proposed sanctions. Local reports say they include a partial suspension of business activities, a move that would restrict MBK's ability to make new investments for a fixed period. The final decision rests with the Financial Services Commission.

Home Plus operates hundreds of stores across South Korea and employs thousands of workers. Its supplier network includes many small and medium-sized businesses that rely on steady payments. A liquidation would ripple through the retail supply chain, potentially triggering payment defaults and job losses. Min said the parliamentary committee should act before the grace period expires to protect workers and small vendors.

The two-week grace period puts pressure on Meritz Financial Group, one of Home Plus's largest creditors. Meritz's decision on whether to provide the $130 million will determine whether the retailer can appeal the court's decision or enter bankruptcy. The proposed sanctions against MBK are among the toughest regulatory actions against a major private equity firm in South Korea in recent years.

MBK said the sanctions have not been finalized. "The sanctions have not been finalized because the case must still undergo review and approval by the FSC," MBK said in a statement. "We will fully explain our position on the issues at hand through the remaining legal procedures."