Jeil Bank Processes Homeplus Promissory Note Default... KFTC Suspends Current Account Transactions

Homeplus Promissory Notes Dishonored for the First Time
Checking Account Transactions Suspended for 10 Days

The promissory notes of Homeplus, which has entered corporate rehabilitation proceedings, were processed as dishonored by the banking sector for the first time, resulting in a complete suspension of its checking account transactions for 10 days.

According to the financial sector, the Korea Financial Telecommunications & Clearings Institute newly registered and announced Homeplus on the checking account suspension inquiry page today. The suspension of checking account transactions is reported to be a measure taken after SC First Bank, Homeplus's main bank, ultimately processed Homeplus's promissory notes as dishonored. Shinhan Bank is also expected to block Homeplus's checking account in accordance with its internal regulations.

A checking account is an account opened by a company or individual business owner to have the bank handle payments on their behalf. Based on this deposit, the bank issues checks and promissory notes, and when these notes are returned, the bank pays the amount on behalf of the depositor. However, with the recent development of real-time transfers, checking account transactions are not used as frequently as before. Accordingly, among major commercial banks, only Shinhan Bank and SC First Bank currently have checking account transaction records with Homeplus, while other banks do not have any checking account transactions with Homeplus at all.