The Democratic Party of Korea has scheduled a parliamentary hearing on Homeplus for July 27, seeking to intensify pressure on the hypermarket chain's largest shareholder, MBK Partners, and its biggest creditor, Meritz Financial Group, to resolve the crisis.
Kang Jun-hyeon, the Democratic Party's chief spokesperson, told reporters after a supreme council meeting at the National Assembly on Wednesday that the party's Political Affairs Committee would hold a plenary session Thursday to vote on witness lists and the hearing schedule. "The hearing is set for the 27th," he said.
The move signals the party's decision to press ahead with the hearing even without the People Power Party, as Homeplus edges closer to bankruptcy and cross-party talks on organizing the Assembly remain deadlocked. Earlier, Yoo Dong-su, the Democratic Party lawmaker who chairs the Political Affairs Committee, had said the party would pursue the hearing through bipartisan consultations once the PPP appointed its ranking member on the committee.
Calls for the hearing have nonetheless grown louder from the broader ruling bloc. At a Political Affairs Committee plenary session on July 6, Rebuilding Korea Party lawmaker Lee Hae-min said the Democratic Party, the Rebuilding Korea Party and the Social Democratic Party could "hold a hearing together as ruling and opposition parties," while Social Democratic Party lawmaker Han Chang-min said he hoped the committee would "actively convene a hearing to expose MBK and Meritz's irresponsibility and hold them accountable."
The hearing is expected to focus on establishing responsibility for the Homeplus bankruptcy crisis and working out a mediation plan. The Seoul Bankruptcy Court ruled on July 3 to terminate Homeplus's corporate rehabilitation proceedings. If no appeal is filed by Monday, Homeplus will move into formal bankruptcy. There are also concerns in the industry that the company could file for bankruptcy on its own without waiting for the deadline.
The Homeplus labor union has been urging MBK and Meritz to provide 200 billion won ($134 million) in emergency operating funds and file an immediate appeal to resume the rehabilitation proceedings. The Democratic Party also appears to be seeking to buy time through the rehabilitation process while exploring an exit strategy. A Democratic Party lawmaker on the Political Affairs Committee said, "The emergency operating funds the court is asking for may not be enough, but we need to extend the rehabilitation period and make every effort to find a new acquirer."
However, the party appears reluctant to support calls from the union and parts of the ruling bloc for public funds to prevent Homeplus from going bankrupt. A lawmaker on the Democratic Party's Euljiro Committee said MBK and Meritz should be made to come up with their own remedies. "Having them pocket the profits while the government fills the hole is not the right approach," the lawmaker said.
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