The South Korean government held a task force meeting on July 10 at the Sejong Government Complex, chaired by Vice Minister of Finance and Economy Lee Hyung-il, to review the implementation status of support measures for Homeplus workers and partner companies. The meeting followed the court's termination of rehabilitation proceedings for the retail chain. The government coordinated support through multiple agencies to address wage arrears and provide financial assistance to affected workers and businesses.
Government Provides Consultation and Wage Arrears Support for Homeplus Workers
According to the government, a total of 692 consultations were received from July 3-9 through the Ministry of Employment and Labor's one-stop consultation window and dedicated staff at local employment and labor offices. The consultations provided guidance on available support measures for affected workers.
The government conducted a comprehensive investigation through the dedicated task force and confirmed wage arrears of 33.3 billion won for June. The government plans to closely monitor the status of additional wage arrears.
Workers affected by wage arrears can receive unpaid wage substitution payments of up to 21 million won per person. The government plans to respond to ensure that substitution payments are provided promptly.
Workers requiring urgent livelihood support can receive living cost loans within the range of unpaid wages, up to a limit of 10 million won per person, at a low interest rate of 1.5% per year.
Financial Institutions Offer Emergency Loans and Credit Guarantees to Partner Companies
Support for partner companies is being implemented promptly. The Small Enterprise and Market Service conducted a total of 45 business difficulty consultations from July 3-8 through the one-stop consultation window.
The emergency business stabilization fund for small business owners, which has been provided since the start of rehabilitation proceedings, will apply preferential interest rates and raise limits for Homeplus partner companies.
The Korea Credit Guarantee Fund added small and medium-sized enterprises and mid-sized companies that suffered direct or indirect damage from the termination of rehabilitation proceedings to the crisis response special guarantee support targets.
Through a financial sector meeting on July 6, banks agreed to continue financial support such as additional repayment grace periods and maturity extensions for loans to Homeplus partner companies. Banks also agreed to provide emergency working capital loans of up to 500 million won per partner company requiring new funds and to offer preferential interest rates.
Government Plans Continued Monitoring of Homeplus Situation
The government plans to closely monitor the damage situation of Homeplus workers and partner companies and consider additional support measures when necessary.
FAQ
What happened to Homeplus that triggered government support measures?
The court terminated rehabilitation proceedings for Homeplus, the retail chain. Following this termination, the South Korean government established a task force to provide support measures for affected workers and partner companies, including addressing wage arrears and offering financial assistance programs.
What support can Homeplus workers receive for unpaid wages?
Workers affected by wage arrears can receive unpaid wage substitution payments of up to 21 million won per person. Workers requiring urgent livelihood support can also receive living cost loans within the range of unpaid wages, up to 10 million won per person, at an interest rate of 1.5% per year.
What financial support is available for Homeplus partner companies?
Partner companies can access emergency business stabilization funds with preferential interest rates and raised limits, crisis response special guarantees from the Korea Credit Guarantee Fund, and emergency working capital loans of up to 500 million won per company from banks with preferential interest rates. Banks also agreed to provide repayment grace periods and maturity extensions for existing loans.
