Homeplus to Provide Consolation Payments to All Employees of Closed Stores

Lee Je-hoon, President of Homeplus (left), is visiting the store and greeting on-site employees.

[Asia Economy Reporter Lim Chun-han] Homeplus announced on the 12th that it will provide consolation payments to all employees belonging to stores targeted for closure.

The first investment after the inauguration of Homeplus President Lee Je-hoon was an investment in ‘people.’ This is the first case in the large-scale retail industry where consolation payments are given to all employees of stores being closed. The company judged that some compensation was necessary for employees of the stores as it proceeded with asset securitization for management reasons. President Lee said, “To express gratitude for the dedication and efforts for the affiliated stores, we have decided to provide consolation payments and employment stability support funds to employees of stores undergoing asset securitization and closure.”

Homeplus will pay 3 million KRW each to employees of the stores subject to sale?Ansan, Daegu, Daejeon Dunsan, Daejeon Tanbang, Gaya?and to employees of Daegu Stadium store, which was closed due to lease contract expiration. The consolation payments will be paid on the payroll date following the official closing date to employees who have been employed at the respective stores from the announcement of the sale until the official closing date. For employees of the already closed Daejeon Tanbang and Daegu Stadium stores, payments will be made on the 17th of next month, before Chuseok.

Among employees who have worked for more than one year at the stores subject to sale, those wishing to resign for personal reasons will receive additional employment stability support funds besides severance pay. Only senior and full-time employees, excluding managerial positions, will receive basic pay ranging from a minimum of three months to a maximum of twelve months depending on their length of service. After store closure, when transferring employees to other stores, placement will be limited to up to three preferred stores where employees wish to work, and additional transfers will be restricted within one year and six months after reassignment.

President Lee said, “The heroes of the Homeplus success story, which once led the Korean distribution industry, are the employees,” and added, “The decision to provide consolation payments amid various management difficulties caused by COVID-19 is a resolution to comfort the hard work of all employees.” He continued, “There is no change in the basic direction of not conducting artificial restructuring due to asset securitization,” and emphasized, “The vision to listen directly to the voices of employees working on the front lines of stores and to focus all business strategies on the field, which I promised on my first day in office, is a promise possible because of the employees.”

This content was produced with the assistance of AI translation services.