SEOUL — Homeplus is implementing a voluntary retirement program open to all employees as part of efforts to navigate ongoing store reductions and sluggish sales.

Faced with mounting fixed costs, including labor expenses, the company announced the measure following a sharp drop in its nationwide operating stores from 126 down to 67, which has left approximately half of its workforce on paid leave.

According to the retail industry on the 7th, Homeplus sent official notices regarding the voluntary retirement plan to the Homeplus branch of the Mart Workers' Union and the Homeplus General Union. The application window is open from today through the 22nd, and is available to all current employees working at both headquarters and retail store locations.

The affected staff includes employees from eight regional branches in the Chungcheong province, including three locations in Cheongju (Cheongju, Cheongju Seongan, and Ochang), Daejeon (Gao and Yuseong branches), South Chungcheong (Nonsan and Boryeong branches), and the Sejong branch.

The scheduled retirement date is set for the 31st of this month. The company plans to disburse unpaid salaries, Chuseok bonuses, and severance packages to departing employees by the 14th of next month. However, no separate voluntary retirement consolation severance bonus will be provided.

Homeplus stated that it has not set a specific target number for personnel reductions. Instead, the company will process voluntary retirements within the limits of its available operating capital, noting that applications may close early or the plan could be canceled depending on its financial situation.

Prior to initiating rehabilitation procedures, Homeplus operated 126 large hypermarkets nationwide, a footprint that has since shrunk to 67 active stores, with roughly 50% of the entire workforce currently on paid leave. Management explained that as the operational scale has diminished, fixed cost burdens have heavily outweighed incoming revenue.

While eight Chungcheong-region stores temporarily suspended operations in July due to a shortage of operating capital, they officially resumed business on August 13. Homeplus subsequently secured emergency operational funds to restart store operations and received rehabilitation plan approval from the Seoul Bankruptcy Court on the 2nd of last month.

Nevertheless, achieving a full sales recovery and securing stable operating capital remain critical challenges. The company previously met with labor unions on the 15th of last month to share current business conditions and formally raised the prospect of voluntary retirement as a step toward normalization.

Through these structural business improvements, Homeplus aims to alleviate cost pressures and accelerate its operational recovery.

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