"Can't Use This Anymore?" Even Danggeun Cuts Ties, No Refund Guidelines... Will Homeplus Gift Certificates Become Worthless?

Gift Certificate Transactions Blocked Across Secondhand Platforms

Temporary Closure After All Stores Shut Down Due to Depleted Operating Funds

Wave of Consumer Complaints as Gift Certificate Use Halted

Risk of Bankruptcy If 2 Trillion

As Homeplus has halted operations at hypermarkets nationwide due to the exhaustion of operating funds, concerns are mounting among consumers who hold Homeplus gift certificates. Consumers are now unable to use these gift certificates both in-store and online, and secondhand trading platforms have also blocked related transactions, effectively leaving no means of disposing of the gift certificates.

According to the retail industry on July 15, the secondhand trading platform Danggeun Market designated Homeplus gift certificates as prohibited items for trading starting from July 13, when Homeplus began its temporary shutdown. Danggeun Market has also taken measures to prevent the posting of sales, purchases, or exchange listings involving Homeplus gift certificates.

Danggeun Market explained that this measure was taken to prevent further damage that could arise in a situation where the use of gift certificates has become difficult due to the store closures. Not only Danggeun Market, but also Joonggonara and Bungaejangter have restricted the trading of Homeplus gift certificates. Joonggonara has completely prohibited the registration of gift certificates since July 3, when the court decided to discontinue the rehabilitation process for Homeplus. Bungaejangter has limited such transactions since March of last year.

The core issue is that Homeplus has not issued any official guidelines concerning refunds for gift certificates. While gift certificates can theoretically be used at Homeplus stores and through its website, the closure of hypermarkets and the suspension of delivery networks have made actual use virtually impossible. Social media and other platforms are filled with complaints such as, "I still have 500,000 won left in gift certificates but now there’s nowhere to use them," or, "I planned to use them little by little but then suddenly all the stores closed." Criticisms have also emerged, arguing that Homeplus should have notified consumers in advance about the closure so they could use up their gift certificates.

Sudden Closure Came as a Surprise Even to Staff

If Homeplus enters bankruptcy proceedings, it may become difficult for those holding gift certificates to receive a refund through normal processes. On July 13, Homeplus temporarily shut down headquarters and 67 hypermarket locations across the country, citing depletion of operating funds. Following the closure of 37 stores in May this year, even key remaining stores have now suspended business in practice.

On the 14th, the second day since Homeplus suspended operations due to a lack of operating funds and insufficient costs to maintain the store, the customer service center at Homeplus Gangseo branch in Gangseo-gu, Seoul, was still lit. Photo by Yonhap News

A representative from Homeplus stated, "All operating funds have run out, so we are unable to cover merchandise payments as well as the costs of maintaining the stores, such as electricity and water bills," and announced temporary closure of headquarters and hypermarkets for security and safety reasons. With distribution centers and delivery vehicles ceasing operations nationwide, it has become difficult to supply goods to stores, and in some locations—where utility bills have not been paid for an extended period—power and water cutoff notices have reportedly been issued.

The abrupt announcement of the shutdown has led to confusion on-site. Many employees showed up for work unaware of the closure, and at some stores, the doors were opened only to be blocked later with carts at the entrance once the head office directive was received. Customers who arrived at stores without knowledge of the closure were also forced to turn back.

2 Trillion Won Needed by the 20th to Remain Viable

Previously, the Seoul Bankruptcy Court decided to discontinue Homeplus’s rehabilitation process on July 3, stating that there was no plan in place to raise the minimum emergency operating funds of 200 billion won required for recovery. However, if Homeplus submits a concrete capital-raising plan by the appeal deadline of the 20th, there remains a possibility that the court could reconsider extending the rehabilitation procedure.

Min Byungduk, Euljiro Committee Chair of the Democratic Party of Korea, is speaking at the MBK Partners-Meritz management meeting for Homeplus revitalization held at the National Assembly Members' Office Building on the 9th. Photo by Hyunmin Kim

As of now, no concrete fundraising plan has been presented. MBK Partners, the majority shareholder of Homeplus, has not provided any additional funding, and Meritz Financial Group, a major creditor, is also reportedly reluctant to offer new loans. If Homeplus fails to raise the necessary funds by the 20th and the court’s decision to discontinue the rehabilitation process stands, there is a strong likelihood that the company will move to bankruptcy and liquidation proceedings. There is also discussion of a “connected bankruptcy,” where the court may declare bankruptcy in connection with the existing rehabilitation case.

If bankruptcy is declared, a court-appointed bankruptcy trustee will be responsible for liquidating remaining assets—such as stores, logistics facilities, and equipment—and distributing them among the creditors. However, since the court has not yet declared bankruptcy, Homeplus is not currently in a confirmed bankruptcy state.

From the Country’s No.2 Hypermarket to the Brink of Bankruptcy

Homeplus began in 1997 when Samsung C&T's retail division opened the first “Samsung Homeplus” store in Daegu. It was subsequently acquired by British retailer Tesco, grew through expanding into the Seoul metropolitan area and acquiring Homever, and became a key player in the hypermarket sector. By 2015, Homeplus had scaled up to operate 140 hypermarkets, 375 corporate supermarkets, and 327 convenience stores, making it a major retail business.

With the court deciding to terminate the rehabilitation process, increasing the likelihood that Homeplus will enter bankruptcy proceedings, a notice from the Mart Labor Union was posted in front of a Homeplus store in Seoul on the 5th. Photo by Yonhap News Agency

However, after Tesco sold Homeplus to MBK Partners for 7.2 trillion won that same year, store sales and asset liquidation followed. Moreover, after the onset of COVID-19, the core of the retail market rapidly shifted to online shopping, further worsening business performance.

Homeplus posted operating losses every year from 2021 through 2024. Eventually, it filed for corporate rehabilitation in March of last year, but with the company no longer able to cover even operational expenses, it has faced its greatest crisis in 29 years since its launch. Homeplus stated it will decide whether to resume operations after monitoring fundraising progress and the court’s final decision by the 20th. Meanwhile, consumers holding Homeplus gift certificates are growing increasingly anxious as stores and trading platforms continue to block usage, with no clear refund measures in place.

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