Gov't confirms W33.3b in unpaid Homeplus wages for June, moves to support workers and suppliers

The government has confirmed 33.3 billion won ($22.1 million) in unpaid wages at Homeplus for June, following a review of damage sustained by workers and suppliers. Authorities plan to accelerate follow-up support, including back-wage advance payments of up to 21 million won per worker and emergency operating loans of up to 500 million won per supplier.

The Ministry of Economy and Finance said Vice Minister Lee Hyeong-il chaired a task force meeting Friday at the Government Sejong Complex, bringing together relevant agencies to assess the situation facing Homeplus workers and suppliers and to review progress on the support package announced July 3.

The meeting was attended by the Ministry of Employment and Labor, the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, the Ministry of Planning and Budget, the Financial Services Commission and the Financial Supervisory Service.

According to the government, a total of 692 consultations were received through the Ministry of Employment and Labor's one-stop counseling window and regional employment offices between July 3 and Thursday — the period following the court's termination of Homeplus's rehabilitation proceedings. During the consultation process, officials guided workers on available support programs, including back-wage payments and livelihood assistance. A dedicated task force also conducted a comprehensive survey that confirmed 33.3 billion won in unpaid wages for June. The government said it will continue monitoring for any additional wage arrears.

Workers affected by the wage nonpayment can receive back-wage advance payments of up to 21 million won per person. Those in urgent need of livelihood support may also apply for a living-expense loan of up to 10 million won at a low annual interest rate of 1.5 percent, within the amount of unpaid wages owed to them.

Support for suppliers is also under way. The Korea Federation of Small and Medium Business conducted 45 business-difficulty consultations through its one-stop counseling window from July 3 through Wednesday. An emergency business stabilization fund for Homeplus suppliers — offering preferential interest rates and higher loan ceilings — will begin accepting applications Wednesday. The Korea Credit Guarantee Fund has also expanded eligibility for its crisis-response special guarantee program to include small and midsize enterprises that suffered direct or indirect losses from the termination of the rehabilitation proceedings.

Banks are stepping up financial support as well. Kookmin, Shinhan, Hana, Woori, Nonghyup, the Industrial Bank of Korea and other lenders have agreed to continue repayment deferrals and loan extensions on loans to Homeplus suppliers, while also providing emergency operating loans of up to 500 million won per company at preferential rates. Since the rehabilitation proceedings began, 7,588 cases of repayment deferrals and loan extensions worth 5.1 trillion won have been provided, and emergency business stabilization funds totaling 6.3 billion won have been disbursed across 175 cases.

The government said it will continue to closely monitor the situation facing Homeplus workers and suppliers and will actively prepare additional support measures if needed.