Homeplus unveils revised rehabilitation plan to manage debt

South Korean retailer Homeplus has unveiled a revised rehabilitation plan to address its ongoing financial crisis, focusing on aggressive asset liquidation and long-term borrowing. The company intends to sell 23 company-owned stores to raise approximately 1.42 trillion won by early 2028. This capital is earmarked to repay trust-backed debts, which will subsequently free up remaining properties to serve as collateral for future loans.

The plan outlines two major upcoming financial milestones: in February 2030, the company expects to borrow 591.8 billion won against its remaining real estate to cover 812.1 billion won in public-interest claims. A final phase in 2037 will require refinancing approximately 914.3 billion won to settle remaining commercial and credit debts.

While Homeplus projects a return to profitability by 2029—with sales reaching 4.12 trillion won and operating profit turning positive—the company faces significant hurdles. The revised plan shows an expected operating loss of 10.3 billion won for the fiscal year ending February 2028. Success depends on the company's ability to restore operational stability across its 67 surviving stores and maintain sufficient collateral value to secure massive loans over the next decade.