The impact of Homeplus's bankruptcy proceedings is becoming evident, with a government survey revealing that 33.3 billion won in wages went unpaid in June.
The Ministry of Economy and Finance held a task force meeting on July 10, led by First Vice Minister Lee Hyung-il, to assess the situation of affected workers and partner companies.
Representatives from the Ministry of Employment and Labor, the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, the Office for Government Policy Coordination, the Financial Services Commission, and the Financial Supervisory Service attended the meeting.
From July 3 to 9, the Ministry of Labor's one-stop consultation center and local employment offices received a total of 692 inquiries related to the situation. During these consultations, the government provided information on support measures for wage arrears, livelihood assistance, and employment support.
Following an investigation by the Ministry of Labor's dedicated task force, it was confirmed that 33.3 billion won in wages were unpaid by Homeplus in June. The government plans to closely monitor for any additional unpaid wages.
Workers affected by wage arrears can receive up to 21 million won in advance payments for unpaid wages. The government has committed to enhancing its response to ensure these payments are made swiftly.
For workers in urgent need of financial support, the government will offer low-interest loans of up to 10 million won at an annual rate of 1.5%, within the limits of the unpaid amounts. Since the start of the bankruptcy proceedings, 8,758 loans totaling 39.7 billion won have been provided for living expenses related to unpaid wages as of July 7.
The Small Enterprise and Market Service's one-stop consultation center reported receiving 45 inquiries regarding business difficulties from July 3 to 8. The government is providing emergency management stabilization funds to small businesses, including Homeplus's partner companies, since the start of the bankruptcy proceedings. As of July 7, 175 cases have received a total of 6.3 billion won in support.
Partner companies of Homeplus will benefit from preferential interest rates and increased loan limits. The government announced on July 10 that it will begin accepting applications for this support starting July 15.
The Korea Credit Guarantee Fund has added small and medium-sized enterprises that have suffered direct and indirect damage due to the bankruptcy proceedings to its special guarantee support program, aiming to lower the barriers for partner companies to access guarantees.
The financial sector is also taking steps to alleviate the funding difficulties faced by partner companies. During a meeting on July 6, major banks, including Kookmin, Shinhan, Hana, Woori, NongHyup, and Industrial Bank of Korea, agreed to continue providing financial support, including additional repayment deferrals and maturity extensions for loans to Homeplus's partner companies.
As of July 3, the banks have implemented repayment deferrals and maturity extensions for 7,588 cases, totaling 5.1 trillion won. Partner companies in need of new funding can receive emergency working capital loans of up to 500 million won, along with preferential interest rates.
The government will continue to monitor the situation to prevent the Homeplus crisis from escalating into broader livelihood insecurity for workers and a chain funding crisis for partner companies. Additional support measures will be considered if necessary.
* This article has been translated by AI.
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