As Homeplus, currently undergoing corporate rehabilitation procedures, has announced the closure of stores due to difficulties in rent negotiations, workers in the Gyeongnam region have once again called for a government-level solution.
On September 8, the Gyeongnam Headquarters of the Mart Industry Labor Union under the Korean Confederation of Trade Unions Service Federation, whose members include Homeplus mart workers, held a rally in front of the main gate of the Gyeongnam Provincial Government Office, demanding, "The government and political circles must immediately intervene to normalize the Homeplus rehabilitation process."
The Gyeongnam Headquarters of the Mart Industry Labor Union under the Korean Confederation of Trade Unions Service Federation is urging government intervention in the Homeplus store closure crisis. Photo by Se Ryeong Lee
They argued, "The store closures by MBK, the largest shareholder of Homeplus, amount to excessive restructuring aimed at transitioning to liquidation procedures," and claimed, "This is expected to cause the collapse of local businesses, as well as impact thousands of workers and in-store merchants."
They further emphasized, "Homeplus is a social infrastructure," and insisted, "The company must pursue normalization of the rehabilitation process through self-rescue efforts, while maintaining employment and the sales network, and restoring public interest and sustainability as the basis for normalization."
They also went as far as the entrance of the provincial government office, demanding that Gyeongnam Province speak out about the Homeplus store closure crisis.
Officials from the Gyeongnam Headquarters of the Korean Confederation of Trade Unions Mart Industry Union are demanding that Park Wan-su, Governor of Gyeongnam Province, speak out regarding the closure of Homeplus. Photo by Lee Seryung
Due to worsening liquidity, Homeplus entered corporate rehabilitation procedures in March of this year. Last month, the company received court approval for a pre-packaged merger and acquisition plan before the rehabilitation plan was finalized, and is now proceeding with the sale.
During this process, Homeplus negotiated with 68 leased stores nationwide to lower rents. However, for 15 stores where no progress was made, the company recently decided to close them sequentially.
The affected stores are Siheung, Gayang, Ilsan, Gyeysan, Ansan Gojan, Suwon Woncheon, Hwaseong Dongtan, Cheonan Sinbang, Munhwa, Jeonju Wansan, Dongchon, Jangnim, Busan Gamman, Ulsan Buk-gu, and Ulsan Nam-gu.
In Gyeongnam Province, there are a total of 18 stores, including 8 large-format stores and 10 express stores, with about 1,000 full-time employees directly hired.
Among them, Jinju, Samcheonpo, Gimhae, and Miryang are four large leased stores.
According to the union, currently there are no stores in Gyeongnam that have been notified of closure or are undergoing restructuring.
A union official said, "Although the leased stores in Gyeongnam recently renewed their contracts, if Homeplus itself disappears, the contract renewals will be meaningless. Workers in other regions are struggling with voluntary resignations and wage cuts, so there is anxiety that the same could happen in Gyeongnam at any time."
The official also stated, "Although no closures have been announced, in-store tenants are leaving rapidly. As these spaces are being filled with private label products, the workload is increasing."
The official further appealed, "The government and political circles must step in to resolve this situation and save the 100,000 workers facing the risk of unemployment."
Tent of the Mart Union for a Sit-in Protest Urging Government Intervention in the Homeplus Store Closure Crisis. Photo by Lee Seryoung
Following the rally, the union plans to set up a tent in front of the provincial government office and continue their sit-in protest until September 13, the day of the nationwide simultaneous rallies to save Homeplus.
However, as the tent was set up in the yellow safety zone in front of the Nuriho rocket model at the main gate of the provincial government office, rather than the location originally reported for the rally, a strong confrontation occurred with government officials, resulting in incidents of assault and finger injuries.
The safety zone is a public evacuation space established for the safety of pedestrians and emergency vehicles in the event of traffic accidents or emergencies. According to the Road Traffic Act, vehicles are not permitted to stop or park within 10 meters of the safety zone in any direction.
The district office and the provincial government demanded the removal of the tent for safety reasons. However, the union argued that the originally planned location, the sidewalk next to the main gate, would obstruct pedestrian traffic and increase the risk of tripping over the tent ropes, making the safety zone a more suitable location.
The union plans to hold a meeting with the provincial government on September 9 and will demand that the tent remain in front of the Nuriho rocket model until the end of the sit-in protest.
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