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🇰🇷 South Korea /Economy & Trade

Homeplus Union Demands Government Action Over Surprise Store Closures

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • Homeplus unionists protested the company's sudden closure of all stores, citing depleted operating funds.
  • The union accused the company of failing to provide any prior explanation and criticized the major shareholder, MBK Partners, for lacking a normalization plan.
  • They urged the government to intervene, calling the situation a social disaster caused by predatory speculative capital and demanding measures for Homeplus's normalization and regulation of private equity funds.

Homeplus union members expressed outrage after the company abruptly announced the temporary closure of all its large-scale stores, citing a depletion of operating funds. The Korean Confederation of Trade Unions' Mart Industry Union Homeplus Chapter stated that the decision was communicated without any prior notice to employees or the union.

Without a single word of explanation, they gave us a surprise notice of closure.

— Homeplus unionThe union's statement criticizing the company's lack of communication regarding the store closures.

Union members arriving for their shifts discovered the stores were closed. The union only received official documentation from the company after inquiring about the situation. Some employees who were in the process of closing down certain stores were reportedly asked to leave by the company.

The union also pointed to a recent 50% discount sale on all items, which the company had explained as a measure to continue business operations and not a sign of liquidation. "Just after the weekend, they are trying to completely dismantle the remaining 67 stores," the union said, criticizing the company's actions.

The company claimed it was a measure to continue business operations.

— Mart Industry UnionReferring to the company's explanation for a recent 50% discount sale.

The union called on the government to step in, arguing that the major shareholder, MBK Partners, lacks both the will and the qualification to normalize Homeplus. They highlighted that the livelihoods of hundreds of thousands of people, including store employees, tenants, and subcontractors, are at stake. The union described the situation as a "social disaster" caused by "predatory speculative capital" and urged the government to recognize its severity.

Just after the weekend, they are trying to completely dismantle the remaining 67 stores.

— Mart Industry UnionDescribing the company's actions following the discount sale.

Demands include a normalization plan for Homeplus and legislation to regulate private equity funds. The union planned a press conference and further protests against MBK Partners and the government.

This situation is not simply a business issue but a social disaster caused by predatory speculative capital.

— Mart Industry UnionCharacterizing the impact of the store closures.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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