A view of Homeplus’s Gangseo headquarters.
The impact of the sudden corporate rehabilitation initiated by Homeplus, Korea’s second-largest hypermarket, is rapidly escalating. Major partners are closely monitoring the situation and are working on response measures, with some halting or reducing their supply. Suppliers of private brand (PB) products are anxious and unable to make decisive moves.
According to industry sources on the 6th, LG Electronics temporarily paused delivering products to Homeplus from the late afternoon of the 5th. There are currently 116 LG Electronics Best Shops within Homeplus stores, and they are only selling the remaining stock inside Homeplus locations.
Samsung Electronics is also keeping a close watch on the situation. There are 25 Samsung stores within Homeplus locations. While deliveries continue normally for now, Samsung will decide on their future response based on Homeplus’s operational status.
The food industry is also preparing countermeasures. Companies like Lotte Wellfood, Lotte Chilsung Beverage, Samyang Foods, Dongsuh Foods, and Ottogi have suspended supplies. Meanwhile, CJ CheilJedang, Nongshim, Daesang, and Ourhome are monitoring the situation. Beauty and household goods companies like Amorepacific and LG Household & Health Care are also observing developments.
Small suppliers that work with Homeplus are even more worried. This is due to concerns that, depending on the progress of the rehabilitation proceedings, payment for deliveries may be delayed or become impossible. Suppliers of PB products to Homeplus, who have significant trade volume, are particularly anxious.
The head of supplier company A said, “We have been contacted to increase supply but still have unpaid delivery bills, so we are unable to increase or decrease supplied quantities and are just waiting and seeing.”
Similarly, in-store businesses at Homeplus face the same situation. These tenants pay rent with a portion of their sales, and Homeplus deducts rent, management fees, and other costs before paying out the remaining sales revenue.
Settlement of the sales proceeds for January and February for tenants under the rent-sharing agreement has also stopped. The scale of the impact seems to have grown after the rehabilitation application was made on March 4, the scheduled day for settlements. Businesses are struggling to place orders for materials and pay employee wages, leading them to consider temporary closure. Franchise stores, in particular, are in a bind, as closures aren’t even an option due to headquarters’ directives. Some businesses are installing kiosks to bypass payment processing through Homeplus to keep operating.
Daiso, a large tenant, is also observing the situation cautiously. A Daiso representative mentioned, “All Daiso stores within Homeplus are directly managed and are functioning normally. We have not yet received any information about delayed payments.”
Experts emphasize that the government must intervene actively to mitigate the impact of the situation.
Professor Jang Woo-chul of Kwangwoon University stated, “Even if a rehabilitation plan is approved, small partners and in-store businesses that cannot endure this period are the problem. The government needs to look into bigger companies like Homeplus.”
Meanwhile, Homeplus announced the resumption of payments for general trade receivables that had been temporarily suspended. Homeplus reports an available cash balance of 309 billion KRW, with an expected cash inflow of about 300 billion KRW from March business activities.