Homeplus opens voluntary retirement applications as stores fall to 67
In short
Homeplus began accepting voluntary retirement applications on Oct 7 and will take them through Oct 22, with retirement set for Oct 31 and unpaid wages, Chuseok bonuses and severance pay to be paid by Nov 14. The company said it has cut its stores from 126 before rehabilitation proceedings to 67, and that about 50% of staff are on paid leave. No target headcount was set, and the company said applications could close early or be cancelled.
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Homeplus has begun accepting voluntary retirement applications, the company said on Oct 7. According to Yonhap, the company sent notices about the program to the Mart Union's Homeplus branch and the Homeplus general union the same day. Applications run from Oct 7 to Oct 22, the scheduled retirement date is Oct 31, and the company said severance pay will be paid by Nov 14. Applicants are to receive unpaid wages, Chuseok bonuses and severance pay in a lump sum, the reports said. Yonhap added that no separate consolation payment to encourage voluntary resignation will be made. [ 2 , 3 , 5 ]
The company linked the program to its shrinking store network. Homeplus said it operated 126 stores before entering rehabilitation proceedings and now runs 67 after closing underperforming outlets, according to ZDNet Korea and Asia Economy. With the store count roughly halved, about 50% of current employees are on paid leave, the company said. Homeplus said no target number of applicants has been set and that the program will run within the limits of available operating funds, and that it could close early or be cancelled depending on circumstances. [ 3 , 5 ]
Homeplus said the decision was driven by a high fixed-cost burden relative to sales, and that it was unavoidable in order to normalize operations and improve business viability. The company said it is doing its utmost for normalization after approval of its rehabilitation plan and intends to focus on stabilizing the overall business environment through structural innovation. Yonhap reported that the company met each union on Sept 15 to explain its management situation and raised voluntary retirement as part of its normalization measures, and that Homeplus has been missing its expected sales while failing to find a buyer for its hypermarket division. [ 2 , 3 , 5 ]
Several points remain open in the documents. Yonhap describes the target group as staff at headquarters and stores, while Korea Economic Daily's headline describes the program as covering all employees. No report gives an estimate of how many employees will apply or leave, and the company said there is no target headcount. [ 1 , 2 , 3 , 4 , 5 ]
Why it matters
The move is the latest step in Homeplus's restructuring under court rehabilitation, and it affects a large retail workforce whose numbers have already been cut as stores closed. A payout guarantee for unpaid wages and severance addresses the main concern for departing staff, but the absence of a target number leaves the scale of the reduction unclear. Coverage is domestic: the retailer's troubles are mainly relevant to Korean employees, suppliers and shoppers.
Key facts
- Homeplus is accepting voluntary retirement applications from Oct 7 to Oct 22, according to the company. [ 2 , 3 , 5 ]
- The scheduled retirement date is Oct 31, and the company said severance pay will be paid by Nov 14. [ 2 , 3 , 5 ]
- The company said applicants will receive unpaid wages, Chuseok bonuses and severance pay in a lump sum. [ 2 , 3 , 5 ]
- Homeplus said no target number of applicants has been set and that the program may close early or be cancelled depending on circumstances. [ 3 , 5 ]
- The company said it operated 126 stores before rehabilitation proceedings and now runs 67 after closing underperforming outlets. [ 3 , 5 ]
- About 50% of current employees are on paid leave, according to the company. [ 3 , 5 ]
- Yonhap reported that Homeplus sent the voluntary retirement notice to the Mart Union's Homeplus branch and the Homeplus general union. [ 2 ]
Confirmed by several sources
- Homeplus is implementing a voluntary retirement program. [ 1 , 2 , 3 , 4 , 5 ]
- Applications are being taken from Oct 7 to Oct 22. [ 2 , 3 , 5 ]
- The retirement date is set for the end of October, and severance pay is to be paid by Nov 14. [ 2 , 3 , 5 ]
- Unpaid wages, Chuseok bonuses and severance pay will be paid to applicants. [ 2 , 3 , 5 ]
- Store numbers have fallen from 126 before rehabilitation to 67. [ 3 , 5 ]
- About half of employees are currently on paid leave. [ 3 , 5 ]
- The company cited a high fixed-cost burden relative to sales and said it aims to improve business viability and normalize operations. [ 2 , 3 , 5 ]
Still unclear
- Whether the program covers all employees or only headquarters and store staff. Korea Economic Daily's headline says all employees were offered voluntary retirement, while Yonhap describes the target group as staff at headquarters and stores.
- How many employees will apply or leave. Neither the company nor the reports give a target headcount or an estimate; the documents say no target number has been set.
- Whether any separate consolation or gratuity payment will be made. Only Yonhap states that no separate payment to encourage voluntary resignation will be made.
What local media are saying
Timeline, local time
- Kukmin Ilbo reports in a headline that Homeplus is implementing voluntary retirement and says unpaid wages and severance pay will be paid. [ 1 ]
- Yonhap reports that Homeplus sent voluntary retirement notices to two unions, with applications from Oct 7 to Oct 22, retirement on Oct 31 and severance pay by Nov 14. [ 2 ]
- ZDNet Korea reports that no target headcount was set, that stores fell from 126 to 67 and that about 50% of employees are on paid leave. [ 3 ]
- Korea Economic Daily reports in a headline that half the stores have closed and that voluntary retirement is being offered to all employees. [ 4 ]
- Asia Economy reports the application period, retirement date and payment date and quotes the company on improving business viability through structural innovation. [ 5 ]