Homeplus Makes Early Repayment of 51.5 Billion Won in Meritz Loan... First Repayment of Financial Claim

Sine Branch Sale Completed Before Rehabilitation Proceedings
Meritz Loan Balance Reduced to Approximately 1.1 Trillion Won

Homeplus announced on the 18th that it had made an early repayment of 51.5 billion won from its loan with Meritz Financial Group. This repayment was made after the sale of the Sine branch, which was conducted prior to the commencement of rehabilitation proceedings, was completed on the 15th. The repayment was carried out after receiving court approval for the early repayment of rehabilitation claims.

Yonhap News

This early repayment is significant as it marks the first case involving a financial claim rather than a trade claim. Previously, Meritz Financial Group executed a senior loan of 1.3 trillion won secured by 62 Homeplus stores and included a special condition requiring an early repayment of 250 billion won within one year.

At a press conference held in March, Homeplus Vice Chairman Kim Kwangil stated, "Of the total 250 billion won in early repayment to Meritz, we have already completed 85 billion won, and we plan to make additional repayments once the real estate sale contracts, which have been in progress since before the rehabilitation application, are finalized. Our financial plans for the early repayment to Meritz are already fully prepared, so there will be no issues with the repayments."

With this early repayment, the total remaining balance of the Meritz loan has been reduced to approximately 1.1 trillion won.

The company explained that the total amount of rehabilitation claims has also decreased, which could help accelerate the pre-approval merger and acquisition (M&A) process currently underway.

Meanwhile, Homeplus plans to re-enter the Sine branch as a next-generation supermarket reflecting the latest shopping trends, once redevelopment of the site is complete and the new building is constructed. If employees wish, the company is considering allowing them to work at the newly reopened Sine branch after redevelopment. Until the reopening, employees will be reassigned to nearby stores, and various support measures, such as separate employment stability support payments, will be provided to help them quickly adapt to the new working environment.