Homeplus CEO says next two weeks critical for survival

MBK commits initial W100b as supermarket chain pushes W300b liquidity plan

Homeplus CEO Joh Ju-yeon speaks in a press conference at the company's headquarters in Seoul on March 14, 2025. (Lee Sang-sub/The Korea Herald)

Homeplus CEO Joh Ju-yeon said Friday that the embattled retailer, now under court-led rehabilitation, requires emergency liquidity more than ever to prevent further deterioration, while downplaying the prospect of liquidation.

"We are committed to restoring normal operations by any means necessary, and liquidation was never on the table," Joh said in an interview with Yonhap News Agency. "There is a strong likelihood that the sale of the Express division, included in the court-submitted rehabilitation plan, will succeed."

The plan, submitted on Dec. 29, 2025, followed the retailer's March filing for court protection, and came after a failed attempt to sell the business during the rehabilitation process.

Among the key proposals is 300 billion won ($204 million) in debtor-in-possession financing to support operations, with 100 billion won potentially coming from each of owner MBK Partners, creditor Meritz Financial Group and state-run lenders like the Korea Development Bank. The plan also includes store closures, workforce reallocation and asset sales, including 10 company-owned properties and the Express business unit.

MBK Partners was the first to act, announcing Friday it would contribute 100 billion won in debtor-in-possession financing as an early commitment, preceding the 200 billion won it had pledged, contingent on a successful merger and acquisition deal. "The firm expressed hope that its decision would pave the way for a swift conclusion to the debtor-in-possession financing agreement," MBK said in a statement.

Joh warned the next two weeks are critical, with store inventories already slashed by around 50 percent. "If emergency funding is injected immediately, full normalization is entirely possible."

Should funding materialize, the company projects a return to profitability by 2029, targeting earnings before interest, taxes, depreciation and amortization of 143.6 billion won. As for a potential acquisition, the company says no discussions are currently underway.

Still, labor union resistance remains a key hurdle. The union opposes asset sales and layoffs, viewing the restructuring as a de facto liquidation, while calling for MBK Partners Chair Michael Byung-ju Kim to be held accountable.

On Wednesday, the Seoul Central District Court rejected arrest warrants for Kim and other senior executives over the sale of Homeplus short-term bonds around the time of the retailer's credit downgrade. MBK's leadership continues to face regulatory pressure, as the Financial Supervisory Service pursues disciplinary action that could range from an institutional warning or formal caution to suspension of up to six months, or a recommendation for dismissal.

Joh called on stakeholders to distinguish Homeplus' operational challenges from MBK's legal troubles. "Homeplus is the foundation of livelihood for nearly 100,000 employees and their families, and the fate of thousands of partner companies and suppliers is closely linked to its recovery."