Homeplus Workers in Gyeongnam Urge Extension of Rehabilitation Deadline and Fulfillment of Normalization Promises

As the decision on whether to approve Homeplus's rehabilitation plan is imminent, Homeplus employees in the Gyeongnam region facing branch closures have called for the Seoul Bankruptcy Court to extend the rehabilitation process deadline and for the government to fulfill its promise of normalization.

The Joint Countermeasure Committee to Save Homeplus in Gyeongnam, which includes Homeplus employees, held a press conference with the Progressive Party at the Gyeongnam Provincial Government Press Center on the 29th, urging, "The court should extend the rehabilitation deadline, and the government should keep its promise to normalize operations."

The Joint Countermeasure Committee for Saving Homeplus is holding a press conference at the Gyeongnam Provincial Government Press Center.
Photo by Se-ryung Lee

The Gyeongnam Countermeasure Committee stated, "A total of 567 full-time employees working at the six Homeplus branches in the Gyeongnam region suddenly lost their workplaces overnight. Meanwhile, tenant businesses are unable to leave the buildings, which have gone dark, due to contract periods and rent issues. Over 50 online delivery workers and cleaning service workers had their contracts unilaterally terminated without prior notice."

They further appealed, "Small business owners are facing the risk of closure due to average outstanding payments of 700 million won, farmers have not received payments for supplied produce, and the shops and traditional markets around the closing Homeplus stores are collapsing alongside Homeplus."

Homeplus is currently set to close 37 hypermarket branches that have already ceased operations.

Of these, six are located in Gyeongnam: Miryang, Jinju, Samcheonpo, Masan, Jinhae, and Gimhae branches.

Homeplus Masan Branch, facing closure following a temporary suspension period.
[Photo by Se Ryeong Lee]

The committee argued, "The downfall of Homeplus, which held the second-largest market share, is the result of financial speculation caused by MBK Partners' predatory leveraged buyout (LBO), reckless asset sales, and multi-trillion-won dividend payouts."

They continued, "Despite this round of closures leading to mass layoffs and forced leaves of absence for many workers, MBK, the party responsible for these problems, is proceeding with a so-called 'eat-and-run liquidation,' pocketing investor funds while evading accountability for the losses."

They went on to demand, "The Seoul Bankruptcy Court should extend the approval deadline for the rehabilitation plan by two months, considering the impact on public livelihoods, the national economy, and social costs. The government and ruling party must present substantive financial and restructuring solutions and keep their promise to resolve the Homeplus crisis."

According to the Gyeongnam branch of the Mart Labor Union, most employees at Homeplus branches slated for closure in the province are undergoing voluntary retirement procedures, with only a few workers at the Gimhae and Jinju branches applying for job transfers.

This is because, out of the eight local branches, six are closing, and there are few locations that meet Homeplus’s condition for transfer placements within a 30-kilometer radius.

The deadline for deciding whether to approve the Homeplus rehabilitation plan, which entered court proceedings in March, is July 3.

On the 29th, a day before the deadline to submit its funding plan, Homeplus submitted a revised rehabilitation plan to the court. The revised proposal reportedly includes the sale of the Homeplus Express business unit, the closure of 37 branches, and workforce reductions through natural attrition and voluntary retirement.

Some observers interpret Homeplus’s submission of a revised rehabilitation plan as an attempt to extend the deadline set by the court, but it remains unclear whether the court will accept this request.

A union representative said, "The closure of Homeplus stores is destroying the livelihoods of not only Homeplus’s full-time staff but also tenant businesses, delivery drivers, and partner company employees—impacting hundreds, if not thousands, of families. The government must step in to address our situation, as many of us are struggling to get by with short-term jobs like delivery or dishwashing after losing our jobs, and take action to resolve this crisis."

This content was produced with the assistance of AI translation services.