The National Assembly's National Policy Committee adopted a resolution on the 26th, with bipartisan agreement, urging the turnaround and cooperative resolution of Homeplus, the retailer whose court-led rehabilitation proceedings recently resumed.
At a full committee meeting that morning, lawmakers added the measure to the agenda and passed it. The resolution calls for Homeplus to draw up a credible rehabilitation plan and commit to carrying it out, for creditors to act responsibly, and for suppliers and other stakeholders to cooperate.
In the resolution, committee members from both parties said approval of the rehabilitation plan by main creditors and other stakeholders — including Meritz Financial Group, Kookmin Bank, Lotte Card, the Korea Credit Guarantee Fund and Hyundai Card — will be required at a stakeholders' meeting on September 2. "We strongly urge creditors not to chase short-term gains alone, but to recognize the enormous social impact of this situation and act responsibly," they said.
Rep. Park Sang-hyuk of the Democratic Party of Korea said the level of agreement was unusual. "I don't think I've ever seen all lawmakers from both parties come together at the committee level like this," the lawmaker said, asking that "all parties involved pool their intentions and efforts in the proceedings ahead, including the creditors' meeting, so that the company is certainly brought back to health."
Rep. Shin Dong-wook of the People Power Party pointed to the growth of online shopping and asymmetric regulation of large discount stores as structural causes of the difficulties facing regional hypermarkets. "Large discount stores play a big role in regional economies, and I ask that you also consider ways for them to coexist with local small business owners," the lawmaker said.
Calls for public hearings on pending bills also followed. Rep. Park Hong-bae of the Democratic Party of Korea requested a legislative hearing on a bill to establish a southeastern regional investment corporation. "We need to channel financial resources concentrated in the capital region into regional industries and companies, and build a locally led growth finance system," the lawmaker said. "There is a need to examine how roles would be divided among policy finance institutions such as the Korea Development Bank, and how funding would be secured."
Rep. Kim Hyun-jung of the Democratic Party said a bill to create a real estate supervisory agency raises "many issues that need thorough discussion, including how to realign investigative and supervisory functions scattered across multiple ministries, the scope of investigative powers, and the protection of personal information and citizens' basic rights." The lawmaker added that "since concerns about excessive authority have also been raised within the People Power Party, a public hearing should be held to hear views on both sides in full."
