This article was displayed on the ChosunBiz MoneyMove (MM) site at 4:19 p.m. on Dec. 30, 2025.
Homeplus Co., which is undergoing a corporate rehabilitation process, has pulled out the card of separating and selling its supermarket chain (SSM). After the failure of a package sale, it is a last‑ditch effort to secure liquidity by selling the relatively viable SSM unit. MBK Partners, the largest shareholder of Homeplus Co., also attempted a separate sale of the SSM once last year.
Some in the market say separating and selling the SSM division will not be easy either. With consumption shifting online and the economic slump persisting, it is no longer seen as an attractive asset. During COVID and shortly after, SSMs were expected to have strong growth potential, but even that has faded. All major domestic retail corporations said they are "not interested at the moment."
According to the investment banking (IB) industry on the 30th, Homeplus Co. the previous day submitted to the court its own rehabilitation plan, which includes a proposal to separate and sell the SSM division "Homeplus Express." The plan calls for reattempting the sale of Homeplus Co. after separating and selling the SSM division, and includes a DIP (debtor‑in‑possession) financing plan of about 300 billion won.
Homeplus Co. plans to secure immediate liquidity by separating and selling Homeplus Express. Recently, Homeplus Co. has been so strapped for cash that it paid employee wages in installments after missing payroll, and even delayed paying electricity bills for stores nationwide and settlement to suppliers. The DIP financing is for the same reason.
A package sale has effectively fallen through. Since entering corporate rehabilitation in March, Homeplus Co. has extended the deadline to submit its rehabilitation plan five times while seeking normalization through a pre‑approval M&A. MBK Partners, the largest shareholder, even conducted an open bidding last month, but not a single bidder participated.
Homeplus Express is considered Homeplus Co.'s prime division. About 75% of roughly 295 stores are concentrated in the Seoul metropolitan area, and its "instant delivery" within one hour is also regarded as strong. As of 2023, EBITDA was in the 100 billion won range, and the sale price is expected to be around 700 billion won.
Analysts say the price would have to come down further for a deal to be struck. GS Retail (GS The Fresh), Lotte Shopping (Lotte Super), and Emart (Emart Everyday), all of which operate SSM divisions, are negative about an acquisition. The burden of raising around 700 billion won in acquisition funds is heavy, and profitability is hard to guarantee amid an economic downturn and weak consumer sentiment.
Even GS Retail, which has built 581 GS The Fresh stores and is No. 1 in Korea's SSM market by store count, has recently halted expansion to focus on strengthening fundamentals. This stems from the rapid shift of consumption online, and GS Retail is understood to have even begun restructuring its convenience store business, once an online safe zone.
Lotte Shopping moved early to streamline assets amid slowing profitability. It even sold the Lotte Super Yeouido store last year. There is some view that Emart, the No. 3 player in the SSM market, could pursue an acquisition to strengthen market power, but Emart said it is "not reviewing an acquisition."
It is also a concern that a previous attempt at a separate sale failed. In June last year, before entering rehabilitation, Homeplus Co., led by its largest shareholder MBK Partners, tried to sell Homeplus Express but halted the process without results. GS Retail and Emart only reviewed the information memorandum, and a single Taiwanese company emerged as a potential buyer but then withdrew.
Homeplus Co. is pinning hopes on the emergence of a surprise bidder. Potential candidates currently mentioned include Chinese e‑commerce platforms such as Ali and Temu, which are seeking to secure offline delivery bases. SSM stores are located near residential areas and are highly usable, and Homeplus Express has a well‑established supply chain, so if price terms are met, Chinese companies could enter.
There is a variable before the sale. Meritz Financial, the largest creditor, may oppose the rehabilitation plan. While there may be little objection to the separation and sale of Homeplus Express, some in the IB industry say there is a possibility of opposition because the 300 billion won DIP financing could affect seniority status.
Under current law, including the Debtor Rehabilitation and Bankruptcy Act, for the rehabilitation plan that Homeplus Co. submitted the previous day to pass, it must obtain approval at a stakeholders' meeting from at least three‑fourths of secured rehabilitation creditors and two‑thirds of rehabilitation creditors by voting right aggregates. Depending on whether creditors consent, the court will decide whether to approve Homeplus Co.'s rehabilitation plan.
An IB industry source said, "Homeplus Co.'s liquidation value exceeds its going‑concern value, so if the rehabilitation plan passes, Homeplus Co.'s life will be extended, but if it is rejected, liquidation is highly likely," adding, "If the rehabilitation plan is voted down under current law, the court could declare bankruptcy ex officio."