Adoption of Resolution Urging Countermeasures
The Changwon Special City Council in Gyeongnam has urged the National Assembly and the government to prepare countermeasures, warning that the local economy could collapse due to the closure and sale of Homeplus stores.
On September 12, the City Council held the 4th plenary session of its 146th extraordinary meeting and adopted the "Resolution on Concerns over the Collapse of the Local Economy and the Need for Countermeasures Following the Closure and Sale of Homeplus," which was sponsored by Assemblywoman Oh Eunok.
Assemblywoman Oh, who proposed the resolution, stated, "On September 3, private equity fund MBK Partners decided to close 15 Homeplus stores nationwide by the end of this year," adding, "Following the termination notices for lease contracts at many locations, the possibility of additional sales and closures has become more apparent."
She continued, "Homeplus is not just a large discount store, but a distribution facility that supports the livelihoods of numerous workers, small business owners, suppliers, and local agricultural and livestock producers. The closure of Homeplus will lead to the collapse of the local employment base, the hollowing out of commercial districts, and a chain of bankruptcies among small businesses and SMEs, causing severe damage to the entire local economy."
She also pointed out, "Although the three Homeplus locations in Changwon are not included in the current closure list, the local community and workers remain in an unstable situation."
She further stated, "In several local governments, the closure of large retailers has already resulted in urban decline and inconvenience for residents. Changwon has also recently witnessed a shrinking of local commercial districts and employment base following the closure of the Lotte Department Store Masan branch."
Assemblywoman Oh criticized, "The unilateral restructuring by MBK Partners forces sacrifices on countless workers, tenant merchants, and key players in the local economy, causing tremendous harm," and insisted, "The company must make responsible efforts for business recovery in coexistence with the local community."
She also emphasized, "The closure of large retailers, the resulting collapse of local commercial districts, and the employment crisis are not issues limited to a single company. The government and the National Assembly must take responsibility and prepare effective countermeasures."
On this day, the City Council called on MBK Partners to normalize Homeplus management through its own efforts and to immediately halt unilateral restructuring.
The Council also demanded that the government and the National Assembly conduct a comprehensive survey of damages suffered by tenant merchants, workers, and suppliers due to the closures, establish effective protection measures, and create institutional mechanisms to ensure employment stability and protect tenant merchants.
The City Council plans to deliver this proposal to the Office of the President, the Ministry of Trade, Industry and Energy, the Ministry of SMEs and Startups, the Fair Trade Commission, and other relevant agencies.
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