With the Seoul Bankruptcy Court approving Homeplus Co.'s rehabilitation plan on the 2nd, Homeplus Co. escaped the brink of liquidation after 1 year and 6 months. But the plan's end point—its own merger and acquisition (M&A)—remains shrouded in fog. In the retail industry, people are saying, "It has been saved, but there's nowhere to buy it." The burden an acquirer must shoulder is heavy, and weak business conditions and regulatory risks are also being cited.
◇ Hard to find bidders for acquisition... SPC formation also floated
According to the retail industry on the 7th, there are about five potential bidders now being mentioned. The common thread is that Homeplus Co. is seen as an asset that could fill each company's weakness at once. The name that comes up often is Naver. Without its own offline logistics infrastructure and reliant on outside logistics such as CJ Logistics, it could resolve that limitation through Homeplus Co.'s nationwide store network. Reports say acquisition rumors involving Naver have been repeatedly raised on Homeplus Co.'s in-house bulletin boards recently.
As the government explored a Homeplus Co. acquisition with major platforms, NongHyup, and financial holding firms, Naver was also said to be on the list. However, most of them reportedly expressed reluctance, citing the difficulty of persuading shareholders. If it is hard for a single party to shoulder the load alone, a structure in which multiple corporations split the funding to establish a special purpose company (SPC) is also being floated. On the e-commerce side, China's Ali is being mentioned. The background is that it could break a portfolio centered on direct purchases of manufactured goods and secure a domestic fresh-food distribution network and offline logistics bases.
Among traditional retailers, the Hyundai Department Store(069960) group is being cited. It has competed with Shinsegae(004170) and Lotte, but it lacks a hypermarket and has a structural weakness in online, so Homeplus Co. is seen as able to complement this. The same goes for GS Retail(007070). With convenience store openings saturated, expanding quick commerce requires fresh-food capabilities and local hub stores.
There is also talk that the Harim(136480) group, which already acquired Homeplus Express, could return to the table. The background is that, after the Express acquisition, monthly sales reached the 70 billion won range, leading to internal assessments that 1 trillion won in annual sales next year is possible.
◇ Weak market conditions and the burden of job succession
Even so, for these cited candidates to actually move is unlikely for now, according to current expectations. In fact, before the rehabilitation plan was approved in June last year, Homeplus Co. initiated M&A, but none of the rumored candidates submitted a letter of intent.
This is primarily because the remaining assets are not very attractive. During rehabilitation, Homeplus Co. sold off a considerable number of prime stores. The 19 remaining owned stores are also specified in the rehabilitation plan to be sold by Feb. 2028 to repay creditors. For an acquirer, the real estate appeal is diminished.
Weak market conditions are another burden. According to the "2026 National Assembly audit issue analysis" recently published by the National Assembly Research Service, from 2021 to 2025, online retailers' sales rose an average of 10.1% per year, while hypermarket sales fell an average of 4.2% per year. The research service said, "With the recent Homeplus Co. situation, suppliers and workers are suffering heavy losses, and such situations may occur frequently during the structural transition of the retail industry." Regulatory risks are also being cited. Under the Distribution Industry Development Act, hypermarkets are, in principle, barred from operating from midnight to 10 a.m. and face two mandatory closure days each month.
The burdens that must be assumed immediately upon acquisition are also heavy. The employment of 9,400 executives and employees, negotiations with multiple unions, and repayment of public-interest claims to small suppliers and tenant businesses all come at once. A person familiar with the retail industry said, "No one opposes the idea that Homeplus Co. should be saved, but in reality no one is stepping up," adding, "The moment you become the controlling shareholder, you have to shoulder all the employment and partner issues; how many corporations can explain that burden to their shareholders in today's market?"