Seoul Court Terminates Homeplus Restructuring on July 3, Citing Failure to Secure 200 Billion Won in Funds

According to Seoul Rehabilitation Court, on July 3, the court terminated Homeplus' corporate restructuring procedure after the major South Korean retailer failed to secure 200 billion won (approximately $150 million) in operating funds required for its recovery plan. The court cited the substantially low feasibility of the company's revised restructuring plan, which lacked concrete funding guarantees from either major shareholder MBK Partners or creditor Meritz Financial Group.

The termination effectively opens the path to bankruptcy proceedings. Homeplus, which once operated around 1,400 stores as the country's second-largest retailer, now faces liquidation unless a buyer emerges. The South Korean government announced a 440 billion won emergency liquidity support package on July 3, including wage arrears compensation of up to 21 million won per employee, emergency funding for affected small business vendors, and special guarantees totaling 350 billion won to prevent cascading bankruptcies.