This article was displayed on the ChosunBiz MoneyMove (MM) site at 3:36 p.m. on May 12, 2026.
Homeplus Co. has moved to secure liquidity by selling its corporate supermarket (SSM) unit, Homeplus Express, to Harim Group, but questions remain over whether a turnaround is possible because raising debtor-in-possession (DIP) financing—the key variable for recovery—remains uncertain. Meritz Financial Group, the largest creditor, is maintaining a skeptical stance on providing additional funding.
According to the investment banking (IB) industry on the 12th, Meritz Financial Group is said to remain cautious about providing DIP financing support to Homeplus Co. To date, neither the internal investment review committee nor working-level staff have reached a concrete conclusion on whether to execute the loan or on the size of any support.
Recently, Homeplus Co. signed a business transfer agreement with NS Shopping for Homeplus Express in a bid to secure liquidity. However, the actual cash that can be secured is only about 120 billion won. That is far below the 300 billion won Homeplus had expected in its rehabilitation plan. Because a certain period is needed before the sale proceeds are received, concerns remain about a short-term gap in working capital.
Homeplus Co. initially planned to secure about 600 billion won in liquidity by raising 300 billion won in DIP financing in addition to the 300 billion won in proceeds from selling Express. Based on that, it envisioned a restructuring-driven rehabilitation scenario that would carry out store rationalization and business reorganization, followed by the sale of the Homeplus parent company.
But both measures seen as the pillars of the current rehabilitation plan appear to be wobbling. The sale price for Express fell well short of expectations, and the DIP financing considered critical has effectively stalled.
Earlier, Homeplus Co. and MBK Partners reportedly asked Meritz Financial Group and the Korea Development Bank to each share about 100 billion won in DIP support. However, both sides are said to have been unenthusiastic. MBK Partners ultimately injected about 100 billion won on its own in March, but a substantial portion has already been used for working capital and other needs.
Inside Meritz, there is said to be considerable skepticism about providing additional funding. With Homeplus Co. continuing to post operating losses and facing significant monthly fixed costs, it is uncertain whether new money would lead to a genuine normalization. There are also concerns that additional support could simply increase the size of the losses.
The market view is that Homeplus Co. is effectively waiting on Meritz's decision. Homeplus recently issued a statement again stressing the need for support from Meritz Financial. Homeplus said, "Most of the funds secured after the rehabilitation process have been used to repay Meritz Financial loans, leaving us short of even minimal working capital," adding, "Without support from Meritz Financial, which holds collateral rights, rehabilitation is effectively difficult."
If Meritz ultimately declines to provide DIP support, Homeplus Co.'s rehabilitation efforts could rapidly lose momentum. If additional liquidity is delayed, the burden of managing basic cash flow—such as paying partner companies and operating stores—could grow. Some in the industry cautiously predict that liquidation could gain more weight than restructuring.