Press Conference in Front of MBK Headquarters in Gwanghwamun Today (6th)
"MBK Obsessed with Capital Recovery After Acquiring Homeplus"
"Chairman Kim Byungjoo Must Fulfill His Responsibility by Contributing Assets"
"Protect Homeplus, Hold MBK Accountable."
At 11 a.m. on the 6th, at D Tower in Gwanghwamun, Seoul. Dozens of workers wearing yellow vests surrounded the entrance of the building housing the office of MBK Partners, the private equity fund (PEF) owner of Homeplus. They clenched their fists and repeatedly shouted slogans. These are union members of Homeplus, the second-largest large-scale retailer, which recently entered corporate rehabilitation proceedings due to liquidity crisis.
The Mart Industry Labor Union of the Korean Confederation of Trade Unions Service Federation held a press conference at 11 a.m. on the 6th in front of MBK at D Tower, Gwanghwamun, Seoul, urging MBK to take responsibility for Homeplus, which has initiated rehabilitation proceedings. (Photo by Jae-Hyun Park)
About 20 members composed of the Mart Industry Labor Union (Mart Union) of the Korean Confederation of Trade Unions Service Federation and the Homeplus branch union held a press conference with determined expressions, holding placards that read "MBK must take responsibility for Homeplus' rehabilitation" and "Condemn MBK, the malicious investor who ruined Homeplus." On the back of their yellow vests was also written "Defend mandatory closure, secure weekend rest rights." They requested a meeting with MBK officials, but MBK did not appear on site.
Homeplus workers raised their voices that the situation on the ground has become very unstable since the start of the rehabilitation process. Some affiliated companies that issued Homeplus gift certificates have already decided to stop their use, rendering them worthless, and some suppliers such as LG Electronics and food industry companies that supplied products to Homeplus have decided to halt deliveries. There are also reports that corporate card usage has been blocked, leading employees to worry not only about their jobs but also about their severance pay.
The Mart Union also raised suspicions that MBK Partners, the major shareholder of Homeplus, initiated the sudden corporate rehabilitation process to increase resale profits. Kang Woo-cheol, chairman of the Mart Union, criticized, "Since acquiring Homeplus, MBK has been obsessed with capital recovery rather than corporate competitiveness for the past 10 years. By selling off assets to recover capital, they have weakened Homeplus' competitiveness and even sold top-ranking stores simply because their real estate value was high."
He added, "It is abnormal to apply for corporate rehabilitation under the pretext of preemptive measures against potential financial issues. If they intend to dispose of Homeplus through massive restructuring, it will lead to a tremendous catastrophe." Chairman Kang raised his voice, "If Kim Byung-joo, chairman of MBK, who is known as Korea's richest man with assets worth 14 trillion won, has a conscience, he should take responsibility even if it means contributing assets."
Kim Kwang-chang, chairman of the Service Federation, also said, "We do not trust MBK's claim that this rehabilitation application was an inevitable decision to save and operate Homeplus stably. Generally, companies applying for rehabilitation have owners who put in their personal funds to revive the company, but MBK has no such intention."
The union members pointed out that, citing past cases of Daewoo Shipbuilding & Marine Engineering and Ssangyong Motor, once rehabilitation proceedings begin, serious restructuring is likely under the pretext of reducing fixed costs. There is great concern that if store closures, asset sales, and mass layoffs materialize during the rehabilitation process, tens of thousands of workers will lose their jobs.
Chairman Kang noted, "Homeplus alone has 20,000 employees, and including partner companies and tenants, the lives of 100,000 workers are being shaken to the core." He added, "We expect MBK to ultimately wield the knife of massive restructuring, which will lead to a huge disaster. MBK must not attempt any restructuring that kills Homeplus."
An Soo-yong, chairman of the Homeplus branch, said, "On the ground right now, employees are at the peak of anxiety, not knowing when the company might go bankrupt or when they might lose their jobs due to store closures or layoffs." He added, "Partner companies are also trembling in fear, worried about a second Tmon-Wemakeprice (Timep) incident."
After the press conference, they planned to visit MBK to protest and continue their struggle to resolve the situation. They also called for political attention to secure workers' employment stability. Chairman Kim stated, "Politics must intervene to prevent more victims and protect our community healthily. The wages and employment of workers who suffer from minimum wage-level pay and extreme labor intensity on the ground must be thoroughly protected."
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