Homeplus Crisis Containment 'Full Effort'... CEO Jo Ju-yeon Promises "Repayment of All Bonds"

Excluding Some Brand Franchisees, Payments to Small Business Creditors Completed
Stable Transaction Retention Rates Secured
Logistics Contractors 100%, Malls 99.9%
Hypermarkets, Supermarkets, and Online 95%
Record-High Performance Achieved, Sales Up 13.4% Year-on-Year

"We will repay all debts responsibly and ensure that no one suffers damage due to the corporate rehabilitation process."

On the 14th, Cho Ju-yeon, CEO of Homeplus, said at a press conference held at the Homeplus headquarters in Gangseo-gu, Seoul, "I sincerely apologize to all partners, tenants, creditors, and others who are experiencing inconvenience due to this rehabilitation process."

At the conference, Kim Kwang-il, Co-CEO of Homeplus and Vice Chairman of MBK Partners, the private equity fund (PEF) and major shareholder of Homeplus, along with CEO Cho and nine company executives, bowed their heads. This was the first official statement since the Seoul Rehabilitation Court initiated the rehabilitation process for Homeplus on the 4th, ten days ago.

Cho Ju-yeon, Co-CEO of Homeplus, is speaking at a press conference related to corporate rehabilitation procedures held at the Homeplus headquarters in Gangseo-gu, Seoul on the 14th. Photo by Yonhap News

Representing the company, CEO Cho expressed the current status and future plans after the rehabilitation process, emphasizing that business operations, cash inflows, and debt repayments are proceeding smoothly to alleviate market concerns about liquidity issues. Cho said, "Thanks to the court's swift decision to commence the rehabilitation process, normalization is progressing rapidly. As of yesterday, we have repaid 340 billion KRW of trade payables, and most small business creditors, excluding large corporations and brand tenants, will soon be fully paid."

Cho also stated, "As of yesterday, the cash on hand is approximately 160 billion KRW, and cash is flowing in daily through operations. Considering this, there is no problem with paying the remaining trade payables." He reiterated, "We are sequentially paying trade payables owed to partners and leased tenants, and although it may take some time, all payments will be made."

Cho Ju-yeon, Co-CEO of Homeplus, is speaking about the business situation at a press conference related to corporate rehabilitation procedures held at the Homeplus headquarters in Gangseo-gu, Seoul on the 14th. Photo by Yonhap News

According to Homeplus, sales during the week following the commencement of the rehabilitation process increased by 13.4% compared to the same period last year, which was the highest performance ever, and the number of customers also grew by 5%. As of the previous day, the transaction retention rates for hypermarkets, supermarkets, and online channels remain at about 95%, while malls maintain 99.9%, logistics 100%, and contractors 100%, all at levels comparable to before the rehabilitation process began.

The company explained that trade payables corresponding to claims before the rehabilitation process, prior to June 4th, are being paid in installments sequentially, and repayments for sales after the rehabilitation process are being made normally. However, Homeplus requested understanding and support from stakeholders for the company's rapid normalization through business activities. CEO Cho said, "It is realistically difficult to pay all debts at once, so we prioritize the claims of small business owners and micro-enterprises and pay them sequentially. If large corporate partners show a little concession, we promise to repay all debts according to the installment schedule."

Homeplus plans to submit a rehabilitation plan to the court by June 3rd after conducting creditor investigations, asset status and corporate value assessments, and stakeholder briefings. Vice Chairman Kim stated, "The commencement of the rehabilitation process prioritizes debt repayment to stakeholders," and drew a line by saying, "Currently, there are no plans for restructuring or selling Homeplus Express."