Kim Soo-hyun Trusted and Recontracted... What Now? 'Adding Insult to Injury' Homeplus

Reappointed as Model for Last Month's Anniversary Event 'Homellun'
Position to Be Determined After Reviewing the Controversy
Controversy Over Prior Knowledge of Credit Rating Downgrade

Actor Kim Soo-hyun (left), a Homeplus store in Seoul (right). Gold medalist, Yonhap News Agency

As Homeplus enters corporate rehabilitation proceedings amid growing concerns, the controversy surrounding its advertising model Kim Soo-hyun has escalated, placing the company in an awkward situation.

According to industry sources on the 13th, the YouTube channel 'Garosero Research Institute' (Gaseyeon) sparked controversy on the 10th by citing statements from the family of the late Kim Sae-ron, claiming that the deceased had been in a relationship with Kim Soo-hyun for six years since she was 15.

Currently, Kim Soo-hyun serves as the advertising model for about ten brands, and Homeplus also reappointed him last month as the model for the 28th anniversary exclusive super sale event 'Homellun is BACK.' Accordingly, posters featuring Kim Soo-hyun’s photos related to the event were posted in stores, and online promotions using his images were conducted.

Homeplus advertisement poster featuring Kim Soo-hyun as the advertising model. Provided by Homeplus.

Regarding whether Homeplus will maintain its contract with Kim Soo-hyun, the company stated, "There have been no changes so far, and we will decide after confirming the exact situation." However, some companies that have contracts with Kim Soo-hyun are removing his images or considering contract termination, so Homeplus may follow suit after monitoring the situation.

In fact, Shabu All Day and K2 removed all photos of Kim Soo-hyun from their channels due to concerns over brand image damage, and LG Household & Health Care deleted a cosmetics advertisement video posted over ten years ago. CJ Foodville, which appointed Kim Soo-hyun as the model for Tous Les Jours in September last year, is reportedly leaning toward not renewing the contract after it expires at the end of this month.

Since initiating rehabilitation proceedings on the 4th, Homeplus has been struggling with aftershocks. Some suppliers of electronics and food temporarily halted deliveries due to concerns over payment but have returned after negotiations. Consumers, worried about not receiving paid products like in last year’s Tmon and Wemakeprice (Timep) incidents, have canceled contracts and requested refunds, especially for high-priced electronics. Additionally, tenant representatives operating stores within Homeplus locations have raised concerns as they have not received settlement payments on time.

Homeplus plans to generate cash through normal business operations and prioritize payments to suppliers, tenant settlements, and employee salaries. Following the 28th anniversary exclusive super sale 'Homellun is BACK' held from the 28th of last month until the day before yesterday, the company will continue discount promotions by hosting 'Encore! Homellun is BACK' for one week starting today.

Homeplus emphasized, "There are rumors that the event was suddenly extended to secure cash, but this is not true. Since 2023, we have been conducting Homellun events, and due to positive customer responses to popular and seasonal products during the event period, we have added an encore Homellun event."

However, controversy over Homeplus’s court management continues. Homeplus and its major shareholder, the private equity fund MBK Partners, have claimed that they urgently filed for rehabilitation proceedings due to an unexpected credit rating downgrade. Yet, it has emerged that the company was already aware of the downgrade, which is expected to fuel further controversy.

Homeplus stated, "On the afternoon of the 25th of last month, around 4 PM, we received preliminary rating results from a credit rating agency’s staff member indicating that our credit rating would be downgraded by one grade, contrary to our expectations, and we were asked if we intended to request a reconsideration." The company added, "With business indicators greatly improving, including three consecutive years of increased online and offline sales, and financial and profit structures expected to improve significantly through the sale of Express, we could not accept the downgrade decision and immediately requested reconsideration on the morning of the 26th." Furthermore, "Despite our reconsideration request, on the late afternoon of February 27, we were notified by the credit rating agency of the final credit rating downgrade by one grade."

This contradicts Homeplus’s previous claims that it was unaware of the downgrade in advance. Earlier, Homeplus asserted that credit rating agencies downgraded the corporate paper (CP) and short-term bond credit ratings from 'A3' to 'A3-' on February 28, leading to the filing for corporate rehabilitation proceedings at the Seoul Bankruptcy Court in the early hours of the 4th.