Homeplus faces bankruptcy risk as MBK and Meritz clash over rescue funding

South Korea’s Homeplus is in a corporate rehabilitation process that could end in liquidation unless a new funding plan is approved. The Seoul bankruptcy court gave Homeplus, its majority owner MBK Partners, and creditor Meritz Financial Group until May 30 to submit a detailed financing proposal, with court approval of the restructuring plan set for July 3.

MBK has asked Meritz to provide a 2 trillion‑won emergency‑operating (DIP) loan, while Meritz says it can only commit 1 trillion won and demands a guarantee from MBK and additional capital. Homeplus argues that Meritz would earn greater profit if the retailer is liquidated, citing recovered loan principal and interest that would exceed the original loan amount.

The dispute also involves the composition of a previously announced 4 trillion‑won support package from MBK, which the victims’ committee says includes only 400 billion won in cash, the rest being guarantees, loan commitments, and asset pledges. Homeplus has recently paid most of its overdue employee wages using proceeds from a 120.6‑billion‑won sale of its Express division, but further salary payments and the livelihood of roughly 3,500 store workers, suppliers and small‑business partners remain at risk.

If Homeplus fails to present a viable financing plan, the court may dismiss the rehabilitation and move toward bankruptcy, potentially affecting thousands of jobs and a wide network of partners.