Gwangju Civic and Labor Groups: "MBK Must Take Responsibility for Homeplus Rehabilitation"

Civic and labor organizations in Gwangju held a press conference in front of Homeplus Gwangju Hanam store in Gwangsan-gu, Gwangju on the 25th, demanding that MBK Partners, the major shareholder, take responsibility for Homeplus's corporate rehabilitation situation. Provided by Gwangju Headquarters of the Korean Confederation of Trade Unions

Civic and labor organizations in the Gwangju region have argued that MBK Partners, the major shareholder, should take responsibility for the corporate rehabilitation situation at Homeplus.

On April 25, a coalition of groups including the Homeplus labor union held a press conference in front of the Homeplus Gwangju Hanam store in Gwangsan-gu, Gwangju, stating, "Management deterioration began due to approximately 5 trillion won in debt that arose when MBK acquired Homeplus," and making this claim.

They asserted, "MBK Partners has operated the company since acquiring Homeplus in 2015 using the risky method of a leveraged buyout (LBO)," and claimed, "They shifted the burden of bank interest rates exceeding 8%, high rental fees, and a 13% dividend paid to the National Pension Service onto Homeplus."

They further emphasized, "Because interest expenses from the debt are covered by Homeplus's operating profits, a structure has been created in which it is impossible to generate net profit," and "As a result, as of January this year, 15 stores nationwide have closed, and 10 more are facing closure."

They added, "MBK should prepare a corporate rehabilitation plan that guarantees the livelihood rights of workers and tenant businesses," and "The government must also thoroughly investigate this situation and establish legal mechanisms to regulate it."

A person identified as Mr. Han, who stated he has worked at Homeplus for 11 years, also appealed, "MBK has abruptly filed for corporate rehabilitation for Homeplus, driving 100,000 workers and small business owners to the brink," and "During last year's National Assembly audit, MBK CEO Kim Kwangil promised in front of the public to engage in dialogue with the union instead of issuing unilateral notifications, but this promise was not kept."

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