Homeplus Union: "A Rehabilitation Plan Must Be Established Without Store Sales or Restructuring"

"Sudden Application Causes Workers to Lose Jobs"
Financial Supervisory Service Investigates Possible Prior Knowledge of Homeplus Credit Downgrade
Homeplus States: "We Will Cooperate Fully with the Investigation and Provide Explanations"

Homeplus, which is approaching one month since entering corporate rehabilitation proceedings, is scheduled to submit a rehabilitation plan to the court by June 12. Meanwhile, political circles and company members have raised their voices, saying, "The plan should not include measures that threaten workers' survival, such as store sales or restructuring."

On the 1st, the Mart Industry Labor Union held a joint press conference with Democratic Party lawmakers Kang Deuk-gu and Lee Yong-woo at the National Assembly Communication Office, strongly demanding that Homeplus major shareholder MBK Partners, which is effectively pursuing rehabilitation on the premise of liquidation, submit a rehabilitation plan that excludes store sales, business unit sales, and restructuring. Provided by Mart Labor Union Homeplus Branch

On the 1st, the Mart Industry Labor Union held a joint press conference at the National Assembly Communication Office with Democratic Party lawmakers Kang Deuk-gu and Lee Yong-woo, claiming that MBK Partners, the private equity fund (PEF) operator and major shareholder of Homeplus, is effectively pushing for rehabilitation on the premise of liquidation.

Lawmaker Kang stated, "MBK's rehabilitation application is the violence of capital logic that disregards workers," adding, "Employment guarantees apply only to some directly managed employees, while subcontracted workers and tenant merchants are treated like invisible people." Lawmaker Lee also emphasized, "After MBK acquired Homeplus through borrowing, it has focused on profit recovery through asset sales rather than performance improvement," and warned, "With 16 stores already closed, there is a high risk that additional stores will be sold, making this rehabilitation effectively a liquidation."

The Mart Union appealed that workers are losing their jobs due to MBK Partners' sudden corporate rehabilitation application. An Soo-yong, head of the Homeplus branch of the Mart Union, said, "Many employees are anxious that the list of stores might be included in the rehabilitation plan," and added, "Some have even left early because they cannot confirm their retirement pensions." He further noted, "Cases of resignation due to intense labor at the site and lack of workforce replenishment are also increasing," emphasizing, "Protecting workers' right to survival is essential for Homeplus to survive."

The union urged, "MBK must submit a rehabilitation plan that fully maintains corporate value without including store sales, business unit sales, or restructuring," and called on them to "not force workers to sacrifice for survival and fulfill the company's social responsibility."

Meanwhile, on the same day, the Financial Supervisory Service stated that MBK may have been aware in advance of Homeplus's credit rating downgrade before applying for rehabilitation proceedings and that discrepancies from the company's explanations were found during the application process, prompting an investigation. The Homeplus union, based on this, suspects that the sudden rehabilitation application is a planned liquidation and repeatedly demands transparent disclosure of MBK's corporate management and rehabilitation procedures.

Homeplus stated, "We deeply apologize for causing harm to all stakeholders and concern to the National Assembly and government due to the urgent corporate rehabilitation application," and added, "We will sincerely cooperate with the ongoing investigation and inspection by the Financial Supervisory Service." They also said, "The timing of recognizing the credit rating downgrade and the circumstances of the corporate rehabilitation application have been explained by the company so far," and added, "We will also sincerely respond and clarify these matters during the Financial Supervisory Service's future investigation and inspection process."