This article was published on August 25, 2026, at 9:55 a.m. on Signal, the capital markets compass.
Michael ByungJu Kim, chairman of MBK Partners, is repaying debtor-in-possession (DIP) loans extended to Homeplus that he had previously guaranteed. After recently adding a joint guarantee on a 200 billion won ($148 million) DIP loan, the personal burden on Kim is becoming a reality.
According to the investment banking industry on the 25th, Kim and other guarantors are repaying 66 billion won in principal and interest on a 60 billion won DIP loan that Curious Partners extended to Homeplus. The DIP loan was injected last year as emergency operating funds to normalize Homeplus operations. Kim and the others agreed at the time that they would not exercise any right of reimbursement against Homeplus even if they fulfilled the guarantee obligations. As a result, the principal and interest that Kim repays will not be charged to Homeplus and will remain his personal burden.
Kim's financial burden related to Homeplus has been growing recently. Creditors have reportedly demanded repayment of part of the 100 billion won that Kim and key MBK executives raised early this year against personal assets, including their homes, as collateral. The funds were raised to resolve unpaid wages at Homeplus and to secure emergency operating funds. Creditors are said to have requested additional collateral while demanding repayment of part of the principal.
The financial burden MBK has taken on during Homeplus's corporate rehabilitation is estimated to reach 600 billion won. In Kim's case, in addition to the DIP loan he is currently repaying, he provided an additional joint guarantee on a 200 billion won DIP loan injected this year. With repayment underway on some of the guarantees and borrowings, there is a considerable chance that guarantee obligations now considered only potential could turn into actual cash outlays.
"Kim is repaying the principal on his existing guarantee obligations and borrowings while having recently provided an additional joint guarantee of 200 billion won," an investment banking industry official said. "His personal-level guarantees and fundraising are turning into an actual cash burden."
