Closed-Door Meeting Between Democratic Party's Kim Byungki and MBK's Kim Byungjoo
The Democratic Party of Korea met with private equity fund manager MBK Partners and secured a promise that no additional Homeplus stores would be closed until a buyer is decided.
After a closed-door meeting held on September 19 at the Homeplus headquarters in Gangseo-gu, Seoul, between MBK Chairman Kim Byungjoo and Floor Leader Kim Byungki, Kim Byungki stated, "We received a firm commitment from MBK that there will be no closures at least until the sale is completed. They said that at least for the 15 stores, or any other stores, there will be no closures until a buyer is determined." Homeplus union representatives cheered and applauded upon hearing this news.
The meeting was attended by Kim Byungki, Floor Leader of the Democratic Party, Yoo Dongsoo, head of the MBK-Homeplus Task Force and Senior Vice Chair of the Policy Committee for Economic Affairs, Min Byungdeok, Chair of the Euljiro Committee, Heo Young, Senior Deputy Floor Leader for Policy, as well as officials from relevant government ministries.
Assemblyman Kim Namgeun stated, "MBK is currently negotiating with a potential buyer, and the sale must be finalized by around November 10. The decision on store closures will be left to the buyer." He added, "However, due to financial difficulties, several conditions must be met in order to avoid closures, and we agreed to continue discussions on this matter. One of the conditions is the issue of securing product supply from major companies, and we will work with the Ministry of Trade, Industry and Energy to resolve this and ensure supply."
At a previous on-site meeting at Homeplus attended by CEO Cho Jooyeon and Homeplus branch head of the Mart Labor Union Ahn Sooyong, Kim Byungki commented, "So far, MBK has only focused on private equity profits while ignoring the damage, and cannot escape such criticism. The Democratic Party will form an internal task force and promote a pan-government task force. We will develop measures to normalize Homeplus and ensure that necessary support is actually provided until the end."
Chairman Min criticized, "When Homeplus was acquired, there were 142 stores, but now the number has dropped to 123, and recently, a plan was announced to close an additional 20 stores. Recently, there was also a hacking incident at Lotte Card, where MBK is the largest shareholder. At this point, it raises doubts as to whether MBK is truly trying to run a legitimate business or simply following the practices of predatory capital." Ahn Sooyong, head of the Homeplus branch of the Mart Labor Union, mentioned the plan to close 15 Homeplus stores and requested the Democratic Party to prevent the closures.
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