South Korean government launches support for Homeplus partners

The South Korean Ministry of SMEs and Startups is implementing support measures for partners and tenants of Homeplus following the retailer's prolonged corporate rehabilitation process. During a meeting held on the 25th in Seoul, government officials discussed management difficulties faced by small businesses due to unpaid settlements and declining sales.

While 67 Homeplus stores have resumed operations, 37 locations are scheduled for closure. Tenants in these closing stores have requested “pinpoint support” tailored to their specific situations, such as relocation costs, rather than uniform aid. Some business owners reported revenue drops of up to 70% and significant unpaid receivables.

To mitigate the crisis, the government has expanded financial aid. The Small Enterprise and Market Service has established a 50 billion won fund specifically for affected small businesses, offering increased loan limits and lower interest rates. Additionally, the Korea SMEs and Startups Agency has created a 40 billion won dedicated track for damaged companies, relaxing eligibility requirements to assist those experiencing significant revenue losses.