Homeplus faces bankruptcy after court ends rehabilitation, endangering up to 100,000 jobs

A Seoul court has terminated Homeplus' corporate rehabilitation process, ruling that the retailer failed to secure the required 2 trillion won of operating funds. Without the funding, Homeplus is likely to enter liquidation, which could affect its 12,000 direct employees and an estimated 100,000 people linked to the chain, including suppliers and small‑business partners.

Homeplus has already halted its nationwide online delivery service and shut down its online customer‑service centre, leaving many orders unfulfilled. The retailer also challenged a payment‑hold notice from Hyundai Card and Samsung Card, demanding that the hold be withdrawn as it lacks legal effect before a final court decision.

The dispute over emergency financing pits major shareholder MBK Partners against creditor Meritz Financial Group, with both sides at odds over guarantees for a 1 trillion‑won loan. The Korean government is preparing emergency aid, offering wage‑arrears payments, low‑interest loans for workers, and liquidity support for affected small and medium‑sized enterprises.