Homeplus general union proposes three-way talks with MBK, Meritz after meeting with creditor

The Homeplus general union has proposed a three-way meeting among MBK Partners, the retailer's largest shareholder, Meritz Financial Group, its largest creditor, and the union itself.

The union announced the proposal Tuesday after meeting with Meritz Financial Group at the Seoul Southern Branch of the Ministry of Employment and Labor. "The union has offered to broker a meeting among Meritz, MBK and the Homeplus union," said Lee Jong-seong, chairman of the Homeplus general union.

Lee appealed for resolution of the crisis facing the bankruptcy-threatened retailer, saying the situation is "a matter of livelihood for 100,000 workers" and that "the personal grievances between MBK and Meritz cannot be resolved by their own logic alone." He added that "both MBK and Meritz must accept some degree of moral responsibility," and asked, "Has it not already been made clear that neither side faces a loss on the principal?"

Meritz Financial Group reaffirmed its existing position at Tuesday's meeting, saying it had deposited 100 billion won ($66.4 million) in emergency operating funds — debtor-in-possession financing — into escrow, subject to guarantees from MBK Partners and MBK Chairman Kim Byung-joo. Meritz doubled down on its stance that MBK must secure the remaining 100 billion won.

A separate meeting between the Homeplus chapter of the Mart Industry Labor Union — affiliated with the Korean Confederation of Trade Unions' Service and Tourism Federation — and Kim Gwang-il, vice chairman of MBK Partners, fell through. MBK Partners notified the union of the cancellation by phone Tuesday morning.

The Mart Industry Labor Union held a press conference in front of Homeplus headquarters that day, criticizing MBK for calling off the meeting. "On the very day of the appointment — Tuesday, July 14 — MBK abruptly postponed the meeting, citing the rehabilitation proceedings and court schedule as excuses," the union said. "Is this the attitude befitting a major shareholder and creditor of a company waiting for a cash infusion?"

The union also warned that if Homeplus is liquidated and dissolved, "the only ones to benefit will be Meritz, which holds the collateral, and MBK, which will walk away with its profits," and called on the government to draw up an emergency normalization plan for Homeplus.

The Seoul Bankruptcy Court ruled on July 3 to terminate Homeplus's corporate rehabilitation proceedings. The court said the proceedings could be reinstated if Homeplus secured 200 billion won in operating funds within 14 days and filed an immediate appeal. Accounting for public holidays including Constitution Day, the deadline falls on Monday.

The two major Homeplus unions plan to hold rallies calling on MBK, Meritz and the government to act. The general union will hold protest rallies Wednesday and Thursday in front of Meritz Financial's headquarters in Yeouido and MBK Partners' headquarters in Gwanghwamun, respectively. The Mart Industry Labor Union will hold a mass rally of Homeplus workers and merchants at Cheong Wa Dae Sarangchae on Wednesday.