*This content was translated by AI.
"This is a typical private equity-style predatory management."
Participation Solidarity raised its voice of condemnation over the Homeplus crisis.
Through a statement released on the 14th, Participation Solidarity's Livelihood and Hope Division stated, "MBK focused solely on recovering investments and minimizing losses rather than normalizing the company, repeatedly resorting to asset sales and restructuring instead of responsible investment and self-recovery efforts." It further described this as "a classic private equity-style predatory management that squeezes assets and cash to the last drop, leaving only social costs behind, rather than managing for long-term growth or revival of the company."
Participation Solidarity criticized MBK Partners, the major shareholder, for its irresponsible management practices in connection with the fourth hunger strike by Homeplus workers and called for active government oversight and management.
The Homeplus branch of the Mart Industry Union under the Korean Confederation of Trade Unions held a press conference at Gwanghwamun Square in Seoul on the 14th, raising its voice of condemnation and beginning a sit-in protest.
The union reportedly claimed that of the 127 stores at the time the company's rehabilitation proceedings began, 60 have already closed, and suppliers have stopped delivering goods while partner companies have withdrawn.
Participation Solidarity pointed to "MBK's irresponsible rehabilitation management" as the background for the worsening Homeplus crisis. In its statement, it noted, "MBK promised to normalize the company through the sale of Homeplus Express and new funding, but reality proved the opposite." It added, "Homeplus Express, which was discussed in the market at around 300 billion won, was ultimately sold for approximately 120 billion won, and the funds MBK pledged to cover fall far short of the liquidity needed."
Participation Solidarity stated, "Homeplus promised reassignment and livelihood security for employees at 37 stores that suspended operations, but these were mere words with no concrete measures in sight." It explained, "This sudden suspension of operations was notified without any consultation or realistic compensation plan." According to the retail industry, Homeplus sent an official letter to the Mart Industry Union's Homeplus branch on the 12th, notifying that reassignment for employees at the 37th closed stores would not be implemented during the suspension period.
Furthermore, in its statement, Participation Solidarity noted, "This surprise store closure has drawn criticism as a de facto liquidation scenario," adding, "MBK has been dismantling the company's very business foundation by successively selling off Homeplus's core assets." It continued, "MBK focused solely on recovering investments and minimizing losses rather than normalizing the company, repeatedly resorting to asset sales and restructuring instead of responsible investment and self-recovery efforts. The resulting harm was shifted onto workers, tenant businesses, and partner companies."
Political circles also raised concerns about MBK's responsibility. Min Byeong-deok (Rep.), Chairman of the Democratic Party of Korea's Eulji-ro Committee, held a recent press conference and stated, "It is known that MBK secured approximately 4.1 trillion won in funds through the sale of 28 stores and logistics warehouses from 2016 to 2024, yet efforts to normalize Homeplus have been minimal." He reportedly added, "This is predatory management that secures profits and then shifts all the harm entirely onto workers, partner companies, and tenant merchants."
Meanwhile, MBK Partners issued a statement on the 15th, saying, "The current Homeplus rehabilitation proceedings are being conducted under the management and supervision of the rehabilitation court in accordance with the 'Act on the Rehabilitation of Debtors and Bankruptcy.'" It further clarified, "It is inaccurate to understand that MBK Partners is directly operating the current rehabilitation process or making independent decisions, as this differs from the actual structure."
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*This content was translated by AI.
