Workers urge Meritz to provide 200 billion won operating loan

'Must act on social responsibility and inclusive finance principles'

Homeplus employees at a store participate in a signature drive to submit a petition to the National Sinmungo, calling on the government to prevent the bankruptcy of Homeplus, which supports the livelihoods of 100,000 people. [Homeplus]
Homeplus employees at a store participate in a signature drive to submit a petition to the National Sinmungo, calling on the government to prevent the bankruptcy of Homeplus, which supports the livelihoods of 100,000 people. [Homeplus]

Homeplus's employee representative body, the Hanmaeum Council, said Friday it had filed a petition with the National Sinmungo urging the government to intervene and secure a 200 billion won ($129 million) operating loan to prevent the retailer's bankruptcy.

"All employees have made painful self-rescue efforts toward rehabilitation, but continued operations are no longer sustainable due to the depletion of operating funds," the council said in the petition. "If operating funds are not secured by June 30, bankruptcy will be difficult to avoid."

The council directed its appeal at Meritz Financial Group, Homeplus's largest creditor, arguing that Meritz should immediately provide the 200 billion won emergency operating loan. It noted that major shareholder MBK Partners and partner Kim Byung-ju had already expressed willingness to provide a joint guarantee worth 100 billion won.

"If Meritz lends just 200 billion won out of its future earnings, acting on the spirit of social responsibility and inclusive finance, rehabilitation is possible," the council said, also calling on relevant government agencies to engage actively and provide support.

The petition was filed just two days after the Seoul Rehabilitation Court notified Homeplus that it must submit a plan to secure 200 billion won in operating funds by June 30. A total of 11,480 employees, partner companies and tenant business owners signed the petition. The council said one food supplier alone saw 300 employees voluntarily add their signatures.

The council said bankruptcy-driven debt collection would not benefit Meritz either, given the significant time and costs involved in persuading stakeholders and carrying out the eviction and auction of collateral assets. It added that the tangible and intangible losses Meritz would incur in the process would also be substantial.

"With all employees, partner companies and tenant businesses joining forces for rehabilitation, securing the 200 billion won operating loan is all it would take for a full recovery," said Jeong Yong-hun, the council's representative.


spa@heraldcorp.com