The National Assembly's Political Affairs Committee holds an emergency forum on the Homeplus rehabilitation case, led by ruling party lawmakers, on Tuesday. People Power Party members did not attend. [Yonhap]
The National Assembly's Political Affairs Committee holds an emergency forum on the Homeplus rehabilitation case, led by ruling party lawmakers, on Tuesday. People Power Party members did not attend. [Yonhap]

The National Assembly's Political Affairs Committee held an emergency forum on the Homeplus crisis Tuesday, led by ruling party lawmakers, sharply criticizing financial regulators and calling inadequate oversight of private equity funds the primary cause of the collapse. Lawmakers from the ruling and allied parties attended, along with Financial Supervisory Service chief Lee Chan-jin and Financial Services Commission Vice Chairman Kwon Dae-young.

Democratic Party lawmaker Jeon Hyeon-hee said MBK — the private equity fund behind Homeplus — has drawn widespread criticism, but financial authorities bear equal, if not greater, responsibility. "The authorities stood by while victims piled up. A proper apology and accountability are needed," she said.

Jeon added that the Financial Services Commission, which she said bears the most responsibility for enabling "predatory management" by private equity funds, must recognize the gravity of the problem.

Fellow Democratic Party lawmaker Kim Hyeon-jeong said the Homeplus situation was "a foreseeable crisis caused by the financial authorities' failure to regulate private equity funds and a wholesale breakdown in supervision." She said private equity funds had privatized profits while evading responsibility — a practice she described as "hit-and-run."

She also proposed regulating leveraged buyouts — in which a company is acquired using borrowed funds and repaid through the acquired firm's assets and earnings — and requiring disclosure for large-scale asset sales.

The session had originally been planned as a formal plenary inquiry of the full committee, but it was downgraded to an emergency forum after People Power Party members declined to attend.

Meanwhile, the Seoul Bankruptcy Court on Tuesday accepted Homeplus's immediate appeal and extended its rehabilitation proceedings. The decision came after Meritz Financial Group committed to providing a full 200 billion won ($135 million) debtor-in-possession loan to support the retailer's rehabilitation, which the court said established a viable financing plan.


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