Homeplus: "Meritz Refuses 200 Billion Won Loan...Government Must Step In to Prevent Bankruptcy"

Homeplus Issues Joint Statement with General Union
"Meritz Stands to Gain More from Homeplus Bankruptcy"

Homeplus and the Homeplus General Union have called on the government to prevent bankruptcy in relation to the company’s rehabilitation plan.

The closed Homeplus Jamsil branch in Songpa-gu, Seoul. Photo by Yonhap News Agency

On June 24, Homeplus issued a joint statement with the General Union, stating, “Since entering rehabilitation proceedings in March last year, we have made self-rescue efforts such as downsizing stores and selling off the supermarket division, but we are now facing a severe cash crunch due to a depletion of operating funds.”

The statement continued, “In order to avoid bankruptcy, we have requested an emergency operating loan of 200 billion won from our largest creditor, Meritz Financial Group, and our major shareholder, MBK Partners, has agreed to provide a joint guarantee for 100 billion won.” It further explained, “However, Meritz Financial Group is refusing to provide support.”

They stressed, “Unless funds are secured by the 30th of this month, it will be difficult to avoid bankruptcy. Meritz, which has secured 64 stores through real estate trust collateral, will recover not only the principal and interest on the loan but more than 1.8 trillion won as the first priority through auction in the event of bankruptcy.”

They added, “Meritz Financial Group stands to gain more from Homeplus going bankrupt than from its recovery. Homeplus employees, suppliers, partner businesses, tenants, and general creditors will all suffer irreparable and significant damages.” They also appealed, “We urge government agencies to communicate and provide support so that Meritz Financial Group can demonstrate its social responsibility and commitment to inclusive finance.”

The Homeplus labor union is currently divided into the Homeplus branch under the Mart Labor Union and the General Union. The Homeplus branch of the Mart Labor Union has also stated, “If the state or the rehabilitation court fails to fulfill their responsibilities, it will only be helping speculative capital to strip assets and leave,” and demanded, “The presidential office should respond to the opinion letter sent by the rehabilitation court.”

In response, Meritz issued a statement in the afternoon, saying, “Meritz Financial has already deposited 100 billion won into an escrow account to help save Homeplus,” and called on Chairman Kim Byung-ju and MBK Partners to demonstrate sincerity by making a matching substantial capital contribution.”

This content was produced with the assistance of AI translation services.