LS Securities: "Homeplus Expected to Be Sold Rather Than Independently Restructured"

On June 16, LS Securities forecast that Homeplus is expected to be sold rather than independently restructured.

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Samil PwC valued Homeplus's going concern value at 2.5 trillion won. In contrast, its liquidation value was estimated at 3.7 trillion won, making the liquidation value 1.2 trillion won higher. Orina, a researcher at LS Securities, explained, "Since the liquidation value is higher than the value of continuing to operate Homeplus, an independent restructuring plan has become meaningless," and added, "If an appropriate buyer cannot be found, it is expected that liquidation proceedings will begin."

Orina also predicted that if Homeplus is sold, a buyer from outside the retail industry is likely to emerge. She explained, "Existing competing retailers have faced significant performance pressures due to prolonged sluggish domestic demand, the rise of online channels, and the standardization of delivery services. As a result, they are focusing on restructuring underperforming businesses and are refraining from aggressive expansion," adding, "Therefore, it is more likely that a buyer will come from outside the traditional retail sector."

However, she projected that the current Homeplus situation will create a favorable environment for other large discount store operators. She said, "A loss of market share by Homeplus is inevitable," and added, "For existing operators, this could result in reduced competitive intensity."

She further emphasized, "Even if a new buyer emerges, there will inevitably be a transition period involving restructuring and business reorganization immediately after the acquisition," and stated, "During this gap, existing retailers are expected to benefit indirectly by expanding their market share and strengthening their bargaining power."