Homeplus Suppliers Unite, Demand Repayment of $560 Million in Unpaid Dues

Suppliers to the South Korean retail giant Homeplus are uniting to demand repayment of roughly 790 billion won (approximately US$560 million) in outstanding payments. The suppliers, who have not been paid for goods supplied during Homeplus's corporate rehabilitation process, have formed a council to collectively pursue their claims.

The Homeplus Commercial Public Interest Creditors Council announced its formation on August 3, stating its goal is to consolidate the public interest claims totaling 790 billion won. They plan to submit an opinion to the court urging prompt repayment and the development of effective measures. The council has appointed law firm LKB Pyeongsan as its representative.

Suppliers claim they continued to supply goods to Homeplus based on assurances that normal operations were unaffected and payments could be made. However, they now face a growing backlog of unpaid dues. Considering losses from unsupplied inventory, additional logistics costs, and financing expenses, the suppliers estimate their actual damages exceed 1 trillion won (about US$720 million).

Currently, dozens of companies have expressed interest in joining the council, with estimates suggesting over 1,000 suppliers are owed money by Homeplus. A representative from a food supplier noted the desperation driving this collective action, stating, "No matter how many times individual companies requested repayment, there was no answer." The council plans to submit its opinion to the court this month and engage with the National Assembly and government.

Homeplus, which had previously faced the risk of bankruptcy after a rehabilitation process was canceled, is now proceeding with rehabilitation after securing 200 billion won in emergency operating funds. This funding allows the company to prepare for the reopening of 67 temporarily closed stores. Homeplus plans to reopen stores sequentially, with a formal reopening scheduled for August 13 after operational checks and improvements.

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No matter how many times individual companies requested repayment, there was no answer.