Homeplus abruptly cancels voluntary retirement plan, again delays payment of overdue wages

[Financial News] Homeplus, which is undergoing corporate rehabilitation proceedings, is understood to have canceled the voluntary retirement program it planned for this month. More employees than initially expected applied, prompting it to close applications early, but the company reversed course just two days before the scheduled retirement date.
According to Financial News’ reporting on the 29th, Homeplus announced that afternoon that it was canceling the voluntary retirement process for applicants. The company is understood not to have given applicants a specific reason for the cancellation. However, since it had originally planned to pay outstanding wages, Chuseok bonuses and severance pay in a lump sum on the 14th of next month, the decision is seen as reflecting its judgment that it would be difficult to cover those costs amid continuing financial difficulties.
Homeplus had planned to accept voluntary retirement applications from all employees from the 7th through the 22nd, but closed applications early on the 14th after more employees applied than expected. The exact number of applicants has not been disclosed, but the union estimates that around 400 people applied. Homeplus had said it would pay voluntary retirees their outstanding wages, Chuseok bonuses and severance pay in a lump sum on the 14th of next month. The terms, however, stipulated that no separate retirement incentive would be paid.
The schedule for paying outstanding wages has also been delayed again. Homeplus notified employees and executives that it was postponing payment of the remaining unpaid portion of August wages, which had been scheduled for the 30th. On the 23rd, the company had said it would first pay a quarter of August wages and pay the remainder on the 30th. But with its financial situation failing to improve, it postponed payment again just one day before it was due. A new payment date has not been set, it is understood.
As the financial difficulties drag on, concerns are growing about Homeplus’s return to normal operations. With some even raising the possibility of liquidation in the worst-case scenario, the union is understood to be discussing how to respond to the cancellation of the voluntary retirement program and unpaid wages, among other issues.
[email protected] Jang Yu-ha and Kim Hyun-ji Reporter