"How to Raise Kids... It's Like Being Told to Die"… Employees and Dealerships Sigh Over Purmil Incident

Purmil Employees and Dealers "Still Can't Believe It"
"Many Employees Have Nowhere to Go... Chairman Took 3 Billion Won"
"Only Debt Left, Dealers Forced to Close... Worried About Children"
Purmil Business Closure Sparks Huge Fallout... Potential for Multiple Lawsuits

[Image source=Yonhap News]

[Asia Economy Reporter Song Seung-yoon] "I can't think of anything."

Kim Yong-seok (41, pseudonym), a dealer operating a Purmil agency in the Jeonnam region, said in response to questions about the recent Purmil incident, "I still don't know what this is about and I am in a daze." He has been running a Purmil product distribution agency in a region of Jeonnam for seven years. Kim explained, "I heard about the business closure a week ago through the news and the agency staff," adding, "So far, the headquarters has not even issued an official notice, and there has been no word regarding any follow-up measures."

With the termination of Purmil's business, he suddenly found himself buried in debt. After working for many years, he started this business to prepare for retirement, but now he faces eviction with over 100 million won in goodwill debt. Kim lamented, "My family is on the verge of collapse in an instant, and I have no idea what to do," adding, "There are agency owners who have operated for less than a year or even just a few months, and their situations are even more serious." Above all, his biggest worry is how to raise his children who are in middle and high school. He is concerned that his adolescent children might be hurt emotionally. His children even received phone calls from close friends who saw the news on TV asking, 'What will happen to your father?'"

On the 21st, Purmil employees, agency owners, and related parties interviewed by Asia Economy unanimously said, "This is basically telling us to just die." Lee Jae-hwan (34, pseudonym), a 6-year employee at Purmil headquarters, said, "Everyone somewhat expected this, and many employees have been leaving for about two years, but no one ever dreamed it would end like this," adding, "Leaving a company voluntarily and preparing to change jobs is very different from being laid off and having to find a new job."

Lee expressed, "Even if young employees prepare to change jobs again, employees who have worked for decades literally have nowhere to go."

Truck drivers who transport Purmil products are in a similar situation. Jeon Do-hyung (48, pseudonym), a truck driver who has been transporting Purmil products in the Gyeongbuk region for over 10 years, said, "I spent money modifying my truck with refrigeration equipment to suit the logistics needs, but now that the workplace is gone, I have to sell the truck at a low price," adding, "Even if I try to move to a similar industry, there is no place to accommodate so many vehicles, and it is impossible to spend money again to modify the truck."

Jeon sighed, "When I think about my eldest child who just entered university and my second child who is about to enter, the future looks bleak," adding, "We are about to be homeless overnight, and we have lost not only severance pay but also the cost of the truck and goodwill."

The fallout from Purmil's business closure is growing uncontrollably. About 350 regular employees who received layoff notices, 50 employees from partner companies, about 150 delivery drivers, and over 1,000 people including 500 agency owners and their staff are directly affected. Retailers who had contracts to supply private brand (PB) products with Purmil are also in a difficult position. Dairy farmers who supplied raw milk to Purmil are similarly affected. There is also a possibility of a series of lawsuits from institutional catering companies and the military, which still have contracts.

Earlier, Purmil announced it would end its business on the 30th of next month and sent an email to all employees on the 17th notifying them of the business closure and layoffs. Employees strongly opposed, saying, "The cause of the deficit stems from the owner's managerial incompetence, but the responsibility is being shifted to the employees." Controversy has spread as claims have been raised about the irresponsible and incompetent management before the closure, including allegations that Chairman Shin Junho took 3 billion won in severance pay when he left earlier this year.

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