Mart workers' union urges government to devise Homeplus rescue plan within 14 days

A Homeplus store in central Seoul prepares to open Friday morning, as the Seoul Bankruptcy Court is set to make a final ruling on the retailer's rehabilitation proceedings. The court's Fourth Rehabilitation Division, presided over by Chief Judge Jeong Jun-yeong, is reviewing the feasibility of a revised rehabilitation plan submitted by Homeplus and will decide whether to extend or terminate the proceedings. Photo by Lim Se-jun

With Homeplus failing to find a buyer and effectively heading toward bankruptcy, the Mart Industry Labor Union on Friday urged the government to "devise a Homeplus rescue plan within 14 days through all possible emergency measures, including the injection of public funds."

The union made the call in a statement, saying the rehabilitation court's decision to terminate the proceedings was "the result of everyone shirking responsibility — from major shareholder MBK Partners and creditor Meritz to the government and the court itself."

The Seoul Bankruptcy Court's Fourth Rehabilitation Division ruled Friday to terminate Homeplus's court receivership, finding that a revised rehabilitation plan the company submitted June 30 had no prospect of being carried out. Homeplus has 14 days to file an immediate appeal. If no appeal is filed, the termination order becomes final.

The union said MBK Partners, which it called the "main culprit" behind the crisis, had "ultimately refused to take responsibility," and that Meritz, which had reaped strong financial gains through Homeplus, had likewise "turned away from its duty to help resolve the situation."

The union went on to say that "even the state, which should be the last line of defense protecting people's lives, stood by as giant capital waged its money war — pushing workers, suppliers, tenants and their families to the brink."

"If 200 billion won ($129 million) cannot be secured within 14 days, Homeplus will ultimately move toward liquidation," the union said, calling the prospect "not merely a problem for one company, but a social disaster that would destroy hundreds of thousands of jobs and devastate local economies."

The union also urged the government to "conduct a thorough investigation into speculative capital MBK Partners, hold it fully accountable under the law, and put in place measures to prevent a recurrence."

The union said it would launch an "emergency campaign over the next 14 days" and vowed to "fight to the end to protect the livelihoods of hundreds of thousands of workers, tenants, suppliers and communities."

korean@heraldcorp.com