[이코노미스트 강예슬 기자] The Homeplus and Korea Zinc labor unions have launched a joint campaign against private equity firm MBK Partners. Both sides characterized the Homeplus restructuring crisis and MBK’s attempt to secure management control as part of the same issue, calling for active government intervention and stricter regulations on private equity firms.

The Homeplus Branch of the Supermarket Industry Labor Union and the Korea Zinc Labor Union held a press conference titled “Calling for MBK to Resolve the Homeplus Crisis and Halt Its Hostile Takeover Attempt of Korea Zinc” on the afternoon of the 30th of last month at the Homeplus hunger strike site in Gwanghwamun Square, Seoul, and declared a joint solidarity struggle.

Representatives from the two major unions and the Progressive Party attended the press conference, chanting slogans such as “Condemn MBK,” “Restore Homeplus to Normalcy,” and “Stop the Usurpation of Management Control at Korea Zinc.”

Ahn Su-yong, head of the Homeplus branch of the Mart Industry Labor Union, stated, “Although we are workers at different workplaces, we are all suffering in the face of the same corporate greed,” adding, “Workers’ lives are being pushed to the brink by MBK—a corporate-hunting speculative capital firm that pursues profit alone while turning a blind eye to its responsibility to grow the company and sustain workers and local communities.”

Branch Chairman Ahn argued, “In the 10 years since MBK acquired Homeplus, assets and real estate have been continuously sold off, and countless stores have closed, forcing workers to lose their jobs or leave their homes.”

He criticized, “Homeplus is currently undergoing rehabilitation proceedings and faces the threat of liquidation, yet MBK is shirking its responsibility,” adding, “Instead of making self-rescue efforts to save Homeplus, MBK is passing the buck to creditors over emergency operating funds, while workers worry about their survival day by day.”

Branch Chairman Ahn said, “We have been fighting to save Homeplus for the past 15 months through street sit-ins, shaving our heads, and four hunger strikes,” and urged, “The government must stop standing idly by and take responsible action to secure emergency operating funds and restore Homeplus to normal operations.”

The Korea Zinc Labor Union also characterized the Homeplus crisis as a result of MBK’s corporate management practices and appealed that Korea Zinc is facing the same crisis.

Lee Eun-sun, chairperson of the Korea Zinc Labor Union, said, “The tragedy at Homeplus is living proof of the consequences that ensue when the speculative capital firm MBK preys on a company,” adding, “Korea Zinc is also facing a life-or-death crisis, on the verge of becoming a playground for the same speculative capital.”

Chairwoman Lee said, “The fact that Homeplus workers are continuing their struggle to the extreme—now on their fourth hunger strike—is by no means a problem unique to Homeplus,” and demanded, “The government and the ruling party must fulfill their promise to resolve the Homeplus crisis and establish practical measures to prevent the recurrence of reckless corporate takeovers and ‘hit-and-run’ practices by private equity funds.”

In a joint statement released that day, both sides stated that MBK’s attempt to secure management control of Korea Zinc undermines the competitiveness of a key national infrastructure industry and threatens workers’ jobs and right to livelihood. Expressing consensus that the Homeplus crisis was also a result of MBK’s irresponsible management and asset sales, they defined the two issues as “not separate problems, but the same problem stemming from the way speculative capital operates companies.”

The union stated, “Koryo Zinc, the world’s largest integrated non-ferrous metal smelting company and a key player in the strategic minerals supply chain, is facing a life-or-death crisis as it risks becoming a playground for speculative capital,” adding that “MBK’s ▲hostile tender offer ▲alleged use of non-public information, and ▲attempts to seize control of the board of directors are anti-national and anti-labor acts that undermine the competitiveness of a core national industry and push workers’ right to livelihood to the brink.”

The union presented the following joint demands: ▲an immediate halt to MBK’s attempt to seize management control of Korea Zinc; ▲fulfillment of the promise made by the government and the Democratic Party of Korea to resolve the Homeplus crisis; and ▲the establishment of practical measures to prevent private equity funds from engaging in corporate raiding and so-called “hit-and-run” practices.

That morning, a “Preparatory Meeting of All Political Parties for a Proposal to Establish a National Assembly Mediation and Social Dialogue Body for Homeplus’s Rehabilitation and the Prevention of Mass Unemployment” was held at the National Assembly. ▲Five political parties—the Democratic Party of Korea, the Cho Kuk Innovation Party, the Progressive Party, the Social Democratic Party, and the Basic Income Party—discussed joint measures to revive Homeplus.

On the same day, Homeplus submitted a revised rehabilitation plan to the Seoul Bankruptcy Court. The revised plan reportedly includes self-rescue measures implemented since the start of rehabilitation proceedings, such as store closures, workforce reductions, and the sale of business units. Starting in July, Homeplus plans to temporarily suspend its “Magic Delivery” online ordering service at select stores, including the Wolgok, Banghak, and Sangbong branches in Seoul.

MBK has stated that it is faithfully participating in the rehabilitation proceedings to restore Homeplus to normal operations and that its investment in Korea Zinc is a legitimate investment activity.

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