Meritz Financial approves 1 trillion‑won DIP loan for Homeplus

Meritz Financial Group, Homeplus’s largest creditor, approved a 1 trillion‑won (approximately US$770 million) emergency operating fund (DIP) to support the retailer’s corporate rehabilitation. The funds will be placed in an escrow account by 19 May and will be released once the guarantees from MBK Partners and its chairman Kim Byung‑ju are verified.

Homeplus had originally requested 2 trillion won; the approved amount is only half, leaving a financing gap that could hinder the normalization of its 67 key stores and the planned sale of remaining business units. Meritz also signalled willingness to cooperate on a subordinate lien over Homeplus’s trust assets. The retailer, which employs more than 10,000 workers and relies on numerous suppliers, argues that rehabilitation is socially and economically preferable to liquidation.

The limited DIP financing raises concerns that Homeplus’s turnaround may face further obstacles, potentially affecting store operations, supplier payments, and the broader retail market in South Korea.