Homeplus's Screams and Politics's Silence [Hankyoreh Prism]

Homeplus employees are facing a potential crisis as the retail company teeters on the brink of bankruptcy. Go Mi-sook, a regional head of the Homeplus union, expressed the deep distress of workers who have dedicated decades to the company, only to face the prospect of losing their jobs due to financial mismanagement. "I entered this company at the youthful age of thirty-six, and now I am turning sixty. I have worked here for a full 25 years," she stated, her voice trembling but firm during a protest at MBK Partners' headquarters. "Homeplus was built by us, our colleagues, sacrificing our very bones. We cannot be kicked out so unfairly, so futilely."

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I entered this company at the youthful age of thirty-six, and now I am turning sixty. I have worked here for a full 25 years. Homeplus was built by us, our colleagues, sacrificing our very bones. We cannot be kicked out so unfairly, so futilely.

The crisis stems from the company's entry into receivership in March 2025, which has been in limbo for over a year. With a looming deadline of March 20th to find a new investor or secure 200 billion won (approximately $145 million) in emergency operating funds, the future of Homeplus, once South Korea's second-largest hypermarket, hangs precariously. The article places primary responsibility on MBK Partners, the majority shareholder, for its "predatory management" through a leveraged buyout that saddled the company with massive debt. Subsequent sales of profitable stores to service debt have crippled its competitiveness, while MBK allegedly neglected the evolving e-commerce landscape.

Adding to the pressure, the largest creditor, Meritz Financial Group, appears unwilling to absorb any losses, further exacerbating the situation. The potential collapse threatens the livelihoods of approximately 10,000 directly employed workers, and up to 100,000 individuals when including affiliated small business owners and suppliers. Despite the magnitude of this crisis, the political sphere has remained conspicuously silent. Major parties are preoccupied with internal party politics and grand investment projects, offering little tangible support or mediation for the affected workers and businesses. While some lawmakers have proposed hearings, a breakthrough seems unlikely in the short term.

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The first responsibility lies with MBK's predatory management. This was foreseen from the moment they chose a leveraged buyout (LBO) method, borrowing nearly 2.7 trillion won, close to half of the acquisition cost, against large-scale real estate.

The government's response has also been inadequate, with a task force focused primarily on post-crisis damage control rather than proactive solutions. An official statement from the presidential office acknowledged the need for support for affected workers and suppliers but offered little concrete action. The main opposition party, the People Power Party, has remained entirely silent on the issue. While smaller parties are calling for government intervention, their voices are drowned out by the larger political noise. This situation prompts a re-evaluation of what politics is doing for ordinary citizens, as the deadline approaches for politicians to take responsibility for their inaction.

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While the survival of up to 100,000 people, including directly employed workers, affiliated small business owners, and suppliers, is at stake, the political sphere, which should be mediating and proposing solutions, is strangely quiet.