Homeplus faces 33.3 billion won wage debt; government offers worker and supplier aid

Homeplus is grappling with a significant wage debt of 33.3 billion won for June, a crisis that emerged after a court terminated the company's corporate rehabilitation proceedings. The Seoul Reapers Court on July 3 decided to end Homeplus's court-supervised restructuring, a move that could lead to bankruptcy if the company fails to secure operating funds and file an appeal within the designated period.

In response to the unfolding situation, the South Korean government has pledged swift support for affected employees and business partners. The Ministry of Economy and Finance announced that the government will expedite advance payments for unpaid wages, offering up to 21 million won per worker. Additionally, suppliers facing financial strain will be eligible for emergency operating fund loans, with individual businesses potentially receiving up to 500 million won.

A dedicated task force, involving several government ministries including Economy and Finance, Employment and Labor, and SMEs and Startups, convened to review the damage to Homeplus employees and suppliers and to monitor the implementation of support measures. Since July 3, a one-stop counseling service has received 692 inquiries from affected individuals. A comprehensive investigation revealed the 33.3 billion won wage debt for June, with ongoing efforts to identify any further unpaid wages.

Beyond the advance payments, the government is offering low-interest livelihood loans of up to 10 million won per worker, with an annual interest rate of 1.5%, for those in urgent need of financial assistance. Since the company's rehabilitation process began in March 2025, 8,758 workers have received 39.7 billion won in livelihood loans. Support for suppliers includes preferential interest rates and increased loan limits for emergency management stabilization funds, with applications opening on July 15. The Korea Credit Guarantee Fund has also expanded its special guarantee program to include small and medium-sized enterprises directly or indirectly impacted by Homeplus's situation. Major banks are set to provide emergency operating fund loans of up to 500 million won per supplier at preferential rates.