The labor union of Korea Zinc has declared an all-out struggle against MBK Partners in solidarity with the Homeplus union. The union defined the large-scale restructuring and store closures that recently took place at Homeplus as "predatory management," declaring that it will never stand by and watch the same thing reproduced at Korea Zinc, a national core industry.
The Korea Zinc union issued a solidarity statement Tuesday, saying, "Homeplus's tears cannot become Korea Zinc's future."
The union pointed out that MBK Partners, a major shareholder, carried out the abrupt closure of 37 stores nationwide and forced resignations, putting not only 3,500 workers but also some 20,000 people, including partner companies and tenant merchants, at risk of being thrown onto the streets.
The union sharply criticized this, saying it "revealed the predatory true colors of a private equity fund that lines its own pockets by carving up and selling assets, with no regard for the soundness of the company or the lives of workers."
In response, the Korea Zinc union declared that it would stand in solidarity with the Homeplus workers conducting a hunger strike at Gwanghwamun Square.
The union particularly demanded strong measures from the government, judicial authorities, and local governments. First, it urged the government and political circles to enact measures to restrict the "leveraged buyout (LBO)" method—in which a company is acquired with debt secured against its assets and then prime assets are sold off—as well as legislation for a "predatory private equity fund prevention act." It then demanded that judicial authorities immediately detain and investigate MBK Chairman Michael ByungJu Kim and Vice Chairman Kim Kwang-il, and impose stern legal punishment. Finally, it pressured Ulsan Mayor-elect Kim Sang-wook to declare before Ulsan's 1.1 million citizens a concrete administrative and political commitment to fundamentally block any hostile M&A of Korea Zinc in order to prevent the destruction of local employment.
Finally, the Korea Zinc union took a do-or-die stance, saying, "If MBK does not abandon its greed for Korea Zinc to the very end, we will join forces with the entire organizational capacity of the Federation of Korean Trade Unions, Ulsan civil society, and all workers across the country whose jobs are under threat, and enter an all-out struggle for MBK's destruction."
