One Year Since Rehabilitation Began... Court to Decide on Extension
Court May Decide Directly, Skipping Creditor Vote
Competitiveness Is Key for Homeplus... Focus Shifts Toward Liquidation
The court is expected to make a decision this week regarding the future of Homeplus's rehabilitation. It will determine whether to approve the rehabilitation plan and allow proceedings to continue, or to proceed with liquidation due to the plan's lack of effectiveness. Although Kim Byungjoo, chairman of MBK Partners, urgently provided 100 billion won in support by offering his home as collateral, doubts remain about whether the rehabilitation plan will be realized.
According to the investment banking industry and legal circles on March 3, the Seoul Bankruptcy Court is expected to decide around March 4 whether to approve Homeplus's rehabilitation plan and whether to continue the rehabilitation proceedings. This marks one year since Homeplus entered rehabilitation proceedings on March 4, 2025. Even if the court grants an extension, the current law allows a maximum of only six months.
Previously, main shareholder MBK Partners submitted a revised plan to the court in December 2025, proposing to normalize operations by selling off the Homeplus Express division and securing an emergency debtor-in-possession (DIP) loan of 300 billion won.
However, as major creditors such as Meritz Financial Group and Korea Development Bank drew a clear line against providing DIP loan funding, MBK Partners was left to take the lead alone. MBK Partners announced that it would first provide 100 billion won on the condition of replacing the administrator, and would lend an additional 100 billion won if the rehabilitation period is extended. As the deadline approached, Chairman Kim Byungjoo even offered his personal assets, including his residence in Hannam-dong, Yongsan-gu, Seoul, as collateral to provide a priority support loan of 100 billion won. This is seen as a measure to prevent a short-term liquidity crisis, including paying employee salaries and settling supplier payments.
In connection with the Homeplus incident, Byungju Kim, chairman of MBK Partners who is accused of fraud worth around 100 billion won, appeared at the pre-arrest hearing at the Seoul Central District Court in Seocho-gu, Seoul on January 13, 2026. Photo by Yojongjun
The Court May Decide Directly, Excluding Creditors
Under current law, the rehabilitation plan must be approved by a meeting of stakeholders within one year from the commencement of the rehabilitation proceedings. The court may grant an extension of up to six months if there are unavoidable reasons, but it may also deny the extension.
Separate from the deadline for the extension, the court is reportedly considering an "exclusion decision." This means that if the court determines that the rehabilitation plan is not feasible, it may exclude the plan from consideration without putting it to a creditor vote, and directly decide whether to liquidate. This would allow the court to make a liquidation decision for Homeplus without convening a stakeholder meeting or holding a vote.
Previously, during the process of soliciting opinions from stakeholders, the Seoul Bankruptcy Court reportedly pointed out that Homeplus had failed to submit specific supporting documents regarding DIP funding, and requested recommendations for a new administrator and proposals for securing funds. On February 13, 2026, the main creditor, Meritz Financial Group, reportedly submitted a response to the court's inquiry regarding exclusion from the rehabilitation plan, highlighting the need for further supplementation concerning DIP funding and asset sales.
"Capital Injection Is Only Buying Time"... Ultimately, Competitiveness Is Key
Nevertheless, the market's outlook remains skeptical. Securing a buyer and raising large-scale new capital are still uncertain, and there is widespread doubt that the restructuring measures (such as store closures, workforce optimization, and business unit sales) are realistically designed to satisfy both the court and creditors.
As a result, even if the rehabilitation plan is extended, the core issue is whether Homeplus can secure the competitiveness needed to continue operations. Many expect that liquidation is likely only a matter of time. There is some hope that rehabilitation could gain momentum if the administrator is replaced, DIP funding is executed, and core assets are sold, but realistically, the situation remains difficult.
An accountant specializing in rehabilitation commented, "Even if Homeplus's rehabilitation is extended, everyone still doubts whether normalization is possible. In fact, it seems that all stakeholders, including Homeplus employees, are just waiting to accept liquidation as the only solution."
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