567 Homeplus Workers in Gyeongnam Face Sudden Unemployment Due to Closures ... Countermeasure Committee Demands Resolution Before Local Elections

As Homeplus stores nationwide have remained closed for the fourth consecutive day due to worsening business conditions, Homeplus employees in the Gyeongnam region, along with labor unions and civic organizations, are calling for a resolution to the situation before the June 3 local elections.

The Joint Countermeasure Committee for the Homeplus Situation in the Gyeongnam Region held a press conference at the Gyeongnam Provincial Government Press Center on May 14, demanding, "The Homeplus issue must be resolved before the local elections."

The Joint Countermeasures Committee for the Homeplus Incident in the Gyeongnam Region is urging the resolution of the Homeplus closure issue before the 9th nationwide local elections.
[Photo by Se-ryung Lee]

The committee stated, "Six out of eight Homeplus stores in Gyeongnam have been included in the closure list, leaving 567 workers suddenly pushed to the edge. In addition, store tenants, online delivery drivers, and partner companies were all abruptly notified about the closures."

They continued, "The closure of even one Homeplus store is not merely about shutting down a single location, but about the collapse of the entire local ecosystem, including employment, suppliers, logistics, and the regional economy as a whole. Gyeongnam is now facing an economic crisis, with the manufacturing downturn compounded by mass unemployment at Homeplus and stagnation of local businesses."

Kim Eunhyeong, head of the Gyeongnam Regional Headquarters of the Korean Confederation of Trade Unions, who spoke in solidarity, diagnosed, "With six out of eight Homeplus stores in the region—amounting to 75% of the stores in the province—closed, the situation is extremely dangerous when considering the mass layoffs and economic ripple effects on the community."

Kim also said, "For workers, a job is their lifeline and means of survival. The government has a duty to uphold its promise to protect workers’ livelihoods, the happiness and future of workers and their families, and the regional economy. The government and all local election candidates must provide clear answers to this situation."

Jeon Heeyoung, Gyeongnam gubernatorial candidate from the Progressive Party, also stated, "The closure of six out of eight stores in Gyeongnam is not simply a temporary shutdown, but an event that devastates the local commercial district and economy. The Gyeongnam provincial government must establish an emergency task force to support workers, partner companies, and tenants in affected cities and counties, providing a one-stop system for overdue wage response, livelihood support, and psychological counseling."

A worker at the Homeplus Changwon Jinhae Branch in Gyeongnam, which has entered temporary closure, is speaking with tears.
Photo by Se-ryung Lee

Kang Hyekyung, head of the Gyeongnam branch of the Mart Labor Union and an employee at the Jinhae branch, appealed, "After 15 years of sharing joys and sorrows at my workplace, I was abruptly told that the store would temporarily close. Yesterday, they said those who volunteered would be reassigned to operating stores, but today they're saying reassignment is difficult."

Kang continued, "I'm afraid that this brief farewell to colleagues, with whom I've spent more time than with my own family, might turn out to be a real goodbye. We are also breadwinners, parents, and workers who need to work to live," she said, her voice trembling.

The Countermeasure Committee announced plans to join an indefinite hunger strike and 108 prostrations protest at Gwanghwamun in Seoul starting today, and to continue their actions by hanging banners in front of each store.

Kang Sunyoung, head of the Gyeongnam branch of the Mart Industry Union under the Korean Confederation of Trade Unions, stated, "Starting today, two people—the organizing director and myself—will participate in an indefinite hunger strike, and we will continue with a relay hunger strike afterward. We will fight to the end so that at least one more store in Gyeongnam survives."

A temporary closure notice banner is displayed at Homeplus Masan Branch located in Yangdeok-dong, Masanhwoin-gu, Changwon-si, Gyeongnam.
Photo by Se Ryeong Lee

Starting from May 10, Homeplus temporarily suspended operations at 37 out of its 107 hypermarket stores nationwide, citing relatively low performance at these locations, and plans to continue the closures through July.

In Gyeongnam, six out of the total eight stores—Masan, Jinhae, Gimhae, Miryang, Jinju, and Samcheonpo branches—have entered into closure.

Among the closed stores, two are directly managed, and four are leased stores. Of the employees at the shuttered branches, 567 are directly employed workers.

The Joint Countermeasure Committee argued that the 'contribution' standard used by Homeplus to select stores for closure is not convincing.

They pointed out that the Jinju and Samcheonpo branches renewed their contracts just last year; the Masan, Changwon, and Geoje stores are self-owned locations; and the Gimhae branch, which ranks among the top in national sales, was also included in the closures. They argued this means 'contribution' is not a clear standard.

The committee cited the causes of the Homeplus closure crisis as the management of MBK Partners, the private equity fund that acquired Homeplus, and Meritz's high-interest loans.

The committee stated, "Before the MBK acquisition, Homeplus earned an operating profit of 19.44 billion won, but after the acquisition, the company sold off and securitized massive real estate assets, repaying nearly 2 trillion won—almost half of its 4.5 trillion won acquisition loan—in just three years, essentially turning Homeplus into a cash withdrawal machine. Meritz issued high-interest loans to Homeplus at a nominal rate of 8% per annum, but with various fees and financial costs, the actual rate reached 11 to 14% per annum. Meritz recovered 256.1 billion won in just one year and continued to earn interest even in 2025, when rehabilitation proceedings are underway."

They further stated, "What killed Homeplus was not market competition, but MBK Partners' predatory profit-taking and Meritz's high-interest loans. The government must resolve the Homeplus crisis and normalize business operations before the local elections."

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