Homeplus pursues 200 billion won lifeline to stave off bankruptcy

Meritz Financial and MBK Partners are weighing an emergency funding plan that could help Homeplus avoid bankruptcy and restart its recovery.

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Shopping carts are lined up at a closed Homeplus store in central Seoul on July 14.

Homeplus, the retail giant teetering on the edge of bankruptcy, is pushing to secure 200 billion won ($134 million) in emergency operating funds.

Meritz Financial Group, the chain's largest creditor, is weighing whether to put up the full 200 billion won, on condition that Homeplus's majority owner — the private equity firm MBK Partners — guarantees the entire sum, industry sources said Wednesday. Meritz's board is set to review the proposal on Thursday.

The push has drawn in ruling-party politicians.

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"The 200 billion won problem will be resolved sometime tomorrow," ruling Democratic Party lawmaker Min Byoung-dug told a rally of Homeplus workers and merchants on Wednesday. "Homeplus's bankruptcy will be averted, and the work of getting it back on its feet will begin."

The picture is not settled, though.

"It's true that the support plan is being coordinated, but nothing has been finalized," an industry source said.

On July 3, the Seoul Bankruptcy Court terminated Homeplus's rehabilitation proceedings. But it left an opening for the decision to be reversed if Homeplus raises the 200 billion won and files an immediate appeal by Monday.


BY PARK JONG-SUH [cho.yongjun1@joongang.co.kr]

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.

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