Democratic Party Launches Homeplus TF... "Assessing MBK's Negligent Management and Damage Status"

The Democratic Party's Euljiro Committee launched the 'Homeplus Countermeasure Task Force (TF)' on the 9th and met with the Homeplus labor union and tenant store owners to listen to their opinions.

A Homeplus store in Seoul. Photo by Yonhap News

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Jin Seong-jun, chairman of the Policy Committee, stated at the TF's first meeting and briefing held at the National Assembly that day, "The Democratic Party has very deep concerns and interest in the Homeplus issue," adding, "We are carefully examining not only the court's rehabilitation proceedings but also whether the private equity fund's acquisition of Homeplus and its reckless and indiscriminate management have caused this situation."

He continued, "More urgent and immediate than structural problems is ensuring that tenant stores and workers do not suffer damages."

Min Byung-duk, chairman of the Euljiro Committee, also pointed out, "The rehabilitation court suddenly and hastily decided on preemptive corporate rehabilitation," and criticized, "Government authorities such as the Fair Trade Commission seem completely unaware of the anxiety felt by tenant stores and workers."

He added, "It looks like Homeplus is turning into 'Homeminus,'" emphasizing, "The Euljiro Committee is currently in contact with the Homeplus management. We intend to firmly secure compensation from the management by assessing the damage status of the victims."

Regarding MBK Partners, the major shareholder of Homeplus, he said, "We must pressure Chairman Kim Byung-joo, the largest shareholder, on how sincere he is about this rehabilitation and how he plans to implement it."

A store owner who attended the briefing appealed, "I am worried that Homeplus is being demonized through media reports, which might lead to a drop in customer visits or a boycott movement," adding, "Our goal is damage compensation and improvement of unreasonable payment methods."

Homeplus abruptly filed for corporate rehabilitation on the 4th after financial difficulties. The trigger was the downgrade of Homeplus's commercial paper and short-term bond credit ratings from 'A3' to 'A3-' by Korea Ratings and Korea Investors Service on the 28th of last month. Concerns are growing over the spread of damages to tenant stores and investors.

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