This article was displayed on the ChosunBiz MoneyMove (MM) website at 6:55 p.m. on Feb. 11, 2026.
With Homeplus Co. standing at a crossroads between rehabilitation and liquidation, it has been found that, if bankruptcy becomes a reality, Meritz Financial Group as the senior secured creditor could receive interest approaching 20% per year. However, industry officials noted that this represents what is "technically possible" under contractual clauses and insolvency procedures, and the actual recovery will depend on the price at which the real estate pledged as collateral is sold.
According to the investment banking (IB) industry on the 11th, under its loan agreement with Homeplus Co., Meritz can receive interest of up to 20% per year in the event of arrears. Collecting 20% interest becomes more likely if Homeplus Co. ultimately fails at corporate rehabilitation and moves into liquidation.
Previously, the total amount of rehabilitation claims Meritz filed with the Seoul Bankruptcy Court was 1.3028 trillion won. That figure adds 86.1 billion won of unpaid interest to 1.2166 trillion won of outstanding loans. The 86.1 billion won is the remainder after deducting 20.8 billion won that exceeds the statutory maximum rate (20% per year) from the unpaid interest aggregates of 106.9 billion won corresponding to the early repayment internal rate of return (IRR) standard (11.5%–13%). In other words, interest in arrears can be collected within the statutory ceiling of 20% per year.
In bankruptcy proceedings, distributions are made as collateral assets are realized (sold). Under the trust structure, the holder of the first-priority beneficial interest is entitled, within the collateral value, to recover principal as well as interest and interest in arrears within the statutory limits.
By contrast, rehabilitation proceedings restructure repayment terms through a court-approved rehabilitation plan. In such cases, the interest and interest-in-arrears items are often reduced, deferred, or recalculated at a low rate in the plan. According to the industry, Meritz was also said to have considered adjustments rather than insisting on full collection of interest and interest in arrears during the rehabilitation phase.
An IB industry official said, "In bankruptcy, the issue is how much cash you recover through collateral realization, whereas in rehabilitation, maturities and interest structures are readjusted with creditor consent on the premise of maintaining going-concern value, so the timing and method of recovery may differ."
Homeplus Co. is currently pursuing a plan to secure 600 billion won in short-term liquidity to avoid liquidation, but the likelihood of success is said to be low.
According to the industry, MBK Partners, the largest shareholder of Homeplus Co., is pursuing a plan to raise a total of 300 billion won in DIP financing and sell Homeplus Express for about 300 billion won to secure a total of 600 billion won. About six strategic investors (SI) are reportedly interested in Homeplus Express, and there is a strong chance of informally receiving letters of intent (LOIs) from bidders at the end of this month.
The problem, however, is the lack of time. Some view the point at which Homeplus Co.'s inventory runs out as the time of liquidation. Homeplus Co.'s current inventory is only about 200 billion won. It is also said that deliveries may be cut off around the Lunar New Year holiday, making liquidation more likely. In retail, when purchasing stops, product gaps lead to lower sales, cash flow worsens, and purchasing capacity declines again.
Meanwhile, the industry does not see "20% annual interest" as a fixed recovery amount. In liquidation, collateral assets must be disposed of and converted to cash, and actual recovery varies with the success and price of asset sales, the speed of realization, and procedural expenses. In particular, for offline stores, industry officials said it cannot be ruled out that public auctions may be prolonged depending on economic and real estate market conditions or that transactions may occur at lower-than-expected prices.