E-Mart's First Voluntary Retirement Since Founding... Union Protests "Employees Treated Like Defeated Soldiers"

Statement Two Days Before the Regular General Meeting
"Self-Reflection and Analysis Must Come First"
Sharp Criticism Directed at CEO Han Chaeyang

Emart is receiving company-wide voluntary retirement applications for the first time since its founding, while the labor union has protested, saying that "employees are being treated like defeated soldiers."

The Korean Federation of Trade Unions’ National Emart Labor Union issued a statement on the afternoon of the 26th, claiming, "When the department store's presence was weak, the success of the discount store Emart helped grow the group, but now they are sending a signal that they want those employees to leave." They added, "The company's cold self-reflection and analysis must come first for proper measures to be taken and for the market and members to empathize." Emart has been accepting company-wide voluntary retirement applications for the first time since its founding starting yesterday. Employees with more than 15 years of service are eligible.

The union pointed out, "Countless business and investment failures are affecting employees and shareholders," and criticized, "It is disheartening that nearly 400 billion KRW is being paid just in interest expenses." They then questioned, "What use is it to change the Key Performance Indicators (KPI) in a company where sycophants run rampant around a naked king?" Emart recorded its highest-ever sales of about 29.4 trillion KRW last year but posted its first operating loss on a consolidated basis due to large losses at Shinsegae Construction. Emart’s separate operating profit also decreased by 27.3% year-on-year to 188 billion KRW.

The union also took aim at Emart CEO Han Chaeyang. They criticized, "CEO Han talked about the essence of the business but ultimately has shown nothing other than reducing labor costs and tampering with finances without a clear vision for the company's future." The union added, "Voluntary retirement should be conducted only for those who truly wish to retire and should provide conditions that give hope," and "We hope Emart manages the company so that customers, the market, and employees can agree that Emart is a company with 'hope.'"

The union’s statement came two days before the company’s regular shareholders’ meeting. Emart will hold its regular shareholders’ meeting on the 28th at the Booyoung Taepyeong Building Convention Hall in Jung-gu, Seoul. At this year’s meeting, Emart has proposed the appointment of three internal directors, including CEO Han Chaeyang. The agenda to appoint Chairman Chung as an internal director was again excluded this year. Some argue that although the group entrusted Chairman Chung with the responsibilities of the chairman due to the need for 'strong leadership,' it is unconvincing that he remains an unregistered executive.