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Meritz Financial Group |
[Alpha Biz= Ellie Kim] According to an exclusive report by MoneyToday, South Korea’s ruling Democratic Party of Korea has convened a closed-door meeting with key stakeholders of Homeplus, including its majority owner MBK Partners and largest creditor Meritz Financial Group, amid mounting concerns over the retailer’s liquidity crisis and potential large-scale layoffs.
According to industry sources, Rep. Min Byung-deok, head of the National Assembly’s Euljiro Committee, held a private meeting with Kim Kwang-il, vice chairman of MBK Partners and court-appointed administrator of Homeplus, along with Kim Jong-min, CEO of Meritz Securities, and Kim Joong-hyun, CEO of Meritz Fire & Marine Insurance.
While details of the meeting were not disclosed, industry observers believe the discussions focused on key issues such as measures to ease Homeplus’ liquidity crunch and a possible extension of its rehabilitation plan. Concerns over job losses were also likely raised, as the company’s workforce has declined from around 20,000 to approximately 15,000, with further layoffs feared following recent voluntary retirement programs.
Homeplus, which entered court-led rehabilitation proceedings in March, has been grappling with severe cash shortages. The company expects to secure approximately 120 billion won through the sale of its supermarket unit, Homeplus Express, although the actual inflow of funds is expected to take up to two months.
In response, Homeplus has requested approval for debtor-in-possession (DIP) financing from Meritz Financial Group, proposing the anticipated sale proceeds as collateral. However, Meritz has maintained that firm guarantees from MBK Partners—not Homeplus—are required for the loan to be approved.
The standoff between the two sides has intensified liquidity concerns and heightened fears of large-scale unemployment. Last month, Homeplus decided to permanently close an additional 37 stores following temporary shutdowns and is currently offering voluntary retirement packages to around 3,000 employees at those locations.
Although the company has reportedly offered compensation equivalent to three months’ salary, payouts may be at risk if creditor approval for DIP financing is not secured.
Industry analysts warn that further delays in financial support could force additional closures among the 67 stores still in operation. If the situation persists, some foresee a broader suspension of operations across the entire chain.
Homeplus said it plans to restructure its hypermarket business around core stores while simplifying its business structure through the sale of Homeplus Express. The company is also seeking emergency funding from creditors, including Meritz Financial Group, with the aim of sustaining rehabilitation efforts and completing a potential merger and acquisition (M&A) process.
Alphabiz Ellie Kim 인턴기자(press@alphabiz.co.kr)
