Most Homeplus collateral stores are 'prime locations,' analysis shows

As Homeplus suspended operations at all its stores nationwide on July 13, it has emerged that the majority of the 61 stores held as collateral by its largest creditor, Meritz Financial Group, were profitable "core stores." This situation places Meritz in a relatively secure position to recover its loans through asset sales, while other creditors, such as suppliers, face greater exposure to potential losses.

According to data obtained by the Hankyoreh from the office of Democratic Party lawmaker Lee In-young, Meritz Financial Group holds collateral on 61 Homeplus stores to secure its 1.3 trillion won (approximately $940 million) in claims. Of these, 72.1% (44 stores) were operating normally right up until Homeplus ceased all business activities. Considering that 67 Homeplus stores were operating nationwide at the time, a significant portion of Meritz's collateral consists of stores that were still generating revenue.

Furthermore, 37.7% of the collateralized stores (23 locations) are situated in prime commercial areas within the Seoul metropolitan region. These include prominent branches like Hapjeong, Shindorim, and Wolgok in Seoul, as well as Yatap, KINTEX, and Incheon Cheongna in the Gyeonggi and Incheon areas. Many of these are high-traffic locations or serve as regional anchors.

Notably, a substantial portion of the collateral comprises standalone properties, which are considered highly valuable for redevelopment. Out of the 61 Meritz-collateralized stores, 42 are single-building properties where Homeplus owns both the land and the building, simplifying potential sales or redevelopment efforts. Industry experts anticipate that Meritz will be able to recover its full loan amount, including principal, interest, and even a 20% annual default interest rate, through auction processes. In contrast, suppliers and other unsecured creditors are likely to bear losses on debts incurred before the company's potential restructuring.