Homeplus eyes 10 more store suspensions as 3,000 workers quit

A union has alleged that Homeplus, which recently suspended operations at 37 hypermarket locations, plans to permanently close all of those stores and is considering suspending an additional 10.

According to the Homeplus branch of the Korean Confederation of Trade Unions' Mart Industry Labor Union, MBK Partners — Homeplus's majority shareholder — presented a revised rehabilitation plan to creditors on May 29 that includes the permanent closure of all 37 suspended stores and the suspension of roughly 10 more.

The prolonged rehabilitation process has also taken a heavy toll on the workforce. The number of directly employed staff has fallen from nearly 20,000 to around 15,000, with 3,000 workers choosing to resign between January and April this year. The union said an additional 3,500 employees are receiving only a furlough allowance of 1.4 million won (about $926) per month due to forced store suspensions, arguing that more than 6,000 direct employees have effectively been pushed out of work.

Choi Cheol-han, secretary-general of the Homeplus union branch, said at a press conference Tuesday that "with fewer than 100 days remaining in the corporate rehabilitation process, MBK is relentlessly pursuing a 'planned liquidation scenario' aimed at dismantling Homeplus entirely."

The union said it would intensify its campaign, demanding that the Lee Jae-myung administration and Cheong Wa Dae immediately fulfill their pledges to normalize Homeplus operations, punish MBK Partners and draw up concrete recovery measures. Starting Thursday, union members including Senior Deputy Branch Chief Son Sang-hee and Secretary-General Choi Cheol-han will join an indefinite hunger strike. Yang Kyung-soo, chairman of the Korean Confederation of Trade Unions, will also join in solidarity.