Meritz Financial Group decided to fully provide 200 billion won in emergency operating funds in debtor-in-possession (DIP) financing to support Homeplus' restructuring. The condition is that MBK Partners and Chairman Michael Kim (김병주) provide joint guarantees for the full loan amount.

Meritz Fire & Marine Insurance, Meritz Securities and Meritz Capital, the three Meritz financial units that are Homeplus' largest creditor group, each held board meetings on Wednesday and gave final approval for 200 billion won in DIP support for Homeplus.

Meritz Financial said it decided to provide the support to share the difficulties faced by Homeplus employees and small business owners and to fulfill the social responsibility of a financial company.

The structure provides a total of 200 billion won by adding another 100 billion won to the 100 billion won that Meritz Financial had initially arranged on a conditional basis.

Meritz Financial said, regarding the additional support decision, "As a financial company that prioritises enhancing shareholder value, providing an additional 100 billion won was a difficult decision made after much deliberation," adding, "We hope this essential funding support becomes a catalyst for rehabilitation."

DIP financing is a loan that provides operating funds to companies undergoing rehabilitation procedures so they can maintain operations and return to normal. With this support, Homeplus secured a basis to meet urgent funding needs such as employee wages and payments to suppliers.

Meritz Financial's support is conditional on guarantees from MBK Partners and Kim.

MBK Partners said that once Meritz Financial's 200 billion won in DIP financing is executed, Kim and MBK Partners plan to directly provide joint guarantees for the full loan amount.

Earlier, MBK Partners said the loan was not confirmed before the board votes by the three Meritz financial units. It said reports suggesting the funding support had already been decided were not true.

With Meritz Financial's final approval in place, procedures for MBK's joint guarantees are expected to proceed.

MBK Partners claimed it provided about 400 billion won through contributions of private funds, cash support and joint guarantees before and after the start of Homeplus' rehabilitation proceedings.

It said that including this 200 billion won joint guarantee, the scale of support related to Homeplus increases to about 600 billion won.