182 Homeplus suppliers urge government, Meritz to step in with active support

Suppliers to Homeplus filed a petition Tuesday with the public grievance portal Gukmin Sinmungo, appealing for government support.

According to Homeplus, 182 suppliers submitted the petition urging government intervention, citing that 47 percent of the retailer's 4,603 total suppliers — those providing products and services — generate more than half their sales through Homeplus. "If Homeplus fails to complete its rehabilitation and goes bankrupt, countless small and midsize suppliers will lose their sales channels and collapse, and tens of thousands of employees will lose their jobs," the suppliers warned.

The suppliers called on the government to stop ignoring their pleas and take active steps to revive Homeplus, which they described as essential public infrastructure drawing about 1 million visitors a day. They also urged Meritz, Homeplus's largest creditor, to immediately extend emergency operating loans to keep the retailer afloat rather than focusing on assigning blame.

The suppliers filing the petition also plan to deliver a separate appeal, signed by employees, to the Seoul Rehabilitation Court. Some of the suppliers are continuing to supply products to Homeplus despite delays in payment settlements. The Hanmaeum Council, Homeplus's employee representative body, had also filed a petition with Gukmin Sinmungo on June 26 asking that bankruptcy be prevented.

Homeplus said it has sold more than 3 trillion won ($1.94 billion) worth of agricultural, livestock and fishery products annually, with domestically sourced goods accounting for 1.9 trillion won — equivalent to 33 percent of the annual transaction volume at Garak Market, the country's largest agricultural and fishery wholesale market. "If Homeplus goes bankrupt, regional farmers will lose their sales channels, and the urban retail market will become monopolized or oligopolized, likely harming both farmers and consumers," the company said.

Meanwhile, Homeplus rebuffed breach-of-trust allegations raised by a committee representing holders of Homeplus purchase-linked bonds over lease negotiations involving its Yeongdeungpo store. Earlier that day, the committee had visited the Seoul Central District Prosecutors' Office to submit a request for an investigation into an additional agreement on the Yeongdeungpo store lease.

Homeplus said all restructuring activities carried out since the start of its rehabilitation proceedings had received approval from the Seoul Rehabilitation Court and followed proper legal procedures. It added that those undermining the efforts of employees working toward rehabilitation should stop doing so.