Court Extends Approval Period for Rehabilitation Plan by Two Months
MBK Expresses Intention to Inject 100 Billion Won in DIP Financing
Condition: "Waiver of Repayment Claim Even If Rehabilitation Proceedings Are Terminated"
Court: "Several
The court has extended the deadline for approval of Homeplus’s rehabilitation plan by two months, exactly one year after the company entered corporate rehabilitation proceedings. This decision was made because MBK Partners, the private equity firm that is the largest shareholder of Homeplus, signaled its intention to inject 100 billion won in emergency debtor-in-possession (DIP) financing, and several companies have expressed interest in acquiring Homeplus Express, the company’s supermarket chain. The court determined that more time was needed to monitor the situation. Homeplus expressed its gratitude for the court’s decision and reaffirmed its commitment to normalization.
The 4th Division of the Seoul Bankruptcy Court, which is in charge of Homeplus’s corporate rehabilitation, announced on March 3 that it had accepted the extension request submitted the previous day by the Homeplus administrator and MBK Partners. As a result, the deadline for approval of the rehabilitation plan has been extended by two months, until May 4.
According to the court, MBK Partners will inject a total of 100 billion won in DIP financing for Homeplus’s rehabilitation, with 50 billion won to be provided by March 4 and another 50 billion won by March 11. It is reported that this capital was secured by using the Hannam-dong residence in Yongsan-gu, Seoul, owned by Kim Byung-joo, Chairman of MBK Partners, as collateral. MBK Partners has set a condition that, even if the rehabilitation proceedings are not approved and are terminated despite the extension, it will waive its right to claim repayment of these funds.
An official from the Seoul Bankruptcy Court stated, “We expect that the 100 billion won to be injected by MBK Partners will be able to resolve urgent debts, such as overdue employee salaries,” and added, “Even if the rehabilitation plan is not approved and the proceedings are terminated, MBK Partners has agreed to forgo its right to claim repayment of the 100 billion won, so extending the approval deadline should not significantly disadvantage other stakeholders, such as rehabilitation creditors.”
The court also explained that as several companies have shown interest in acquiring Homeplus Express, which is currently up for sale, additional time is needed to confirm whether letters of intent will be submitted. The Seoul Bankruptcy Court plans to discuss the formation of a management normalization task force (TF) this week, which will include participation from the debtor, shareholders, and the creditors’ council.
Homeplus promptly issued a statement expressing gratitude for the court’s decision and said, “Over the next two months, we will complete all structural reform plans, including the sale of Homeplus Express, without delay, and will achieve normalization without fail.”
Previously, after applying for the commencement of corporate rehabilitation proceedings on March 4 last year, Homeplus extended the deadline for submission of its rehabilitation plan five times, ultimately submitting a so-called structural reform-type rehabilitation plan on December 29, 2025. The plan included the separate sale of Homeplus Express and the closure of 41 underperforming stores over the next six years. On January 27, the company announced a voluntary retirement program for deputy general managers and higher-ranking department heads at its headquarters. As a result, the number of Homeplus employees, which stood at 19,924 as of February 2025, is expected to decrease by around 3,474 by April 1, 2026.
Homeplus has claimed that “visible results are emerging, such as a reduction of 160 billion won in labor costs and an improvement of 100 billion won in operating profit through the closure of underperforming stores and workforce optimization,” and asserted that if all planned structural reforms are completed and business operations normalize, a turnaround to operating profit can be achieved by 2028.
In addition, MBK Partners is covering the 100 billion won DIP financing, and has requested 100 billion won each-totaling 300 billion won in support-from Meritz Financial Group, the largest creditor, and the Korea Development Bank, a policy finance institution, but these institutions have not responded.
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