Homeplus tenant disputes persist as store reopenings near; Fair Trade Commission to step in

Conflicts between Homeplus and its in-store tenants are persisting as the retailer prepares to reopen dozens of locations. Tenants who want to leave, citing falling sales during the company's court receivership process, are at an impasse with Homeplus headquarters, which insists that departing tenants must fully restore their spaces to their original condition. Amid growing losses among tenants, the Korea Fair Trade Commission has signaled it will hold talks with Homeplus.

In a written response to the National Assembly on tenant damages, the Fair Trade Commission said Monday it has no legal authority to compel Homeplus to waive tenants' civil obligation to restore their spaces simply because they suffered losses. However, the commission said it plans to recommend that Homeplus minimize tenant damages through direct consultations, and that it will verify conditions through on-site investigations and urge the company to limit harm.

Homeplus suspended operations at 67 stores on July 13 — 10 days after the Seoul Bankruptcy Court decided to terminate its court receivership proceedings. Tenants at those 67 locations inquired about leaving after sales collapsed following the closure, but were told they must first restore their spaces to the condition they were in before moving in. Restoration costs are estimated to range from several million won to hundreds of millions of won, depending on the business.

One food stall operator at a Homeplus store said the financial burden is severe even for those trying to stay open. "With no customers coming in, just the cost of buying and disposing of ingredients is overwhelming," the operator said. "It's infuriating to be told to restore the space and leave when the damage was caused by the company's own mismanagement."

A similar dispute over restoration obligations erupted in May, when Homeplus suspended operations at 37 other stores. The Fair Trade Commission stepped in as mediator at the time, and Homeplus ultimately agreed to waive the restoration requirement. Those 37 stores have since been confirmed for permanent closure. The 67 stores now in question are set to reopen, making the competing interests of Homeplus and its tenants far more complicated. Homeplus has said no policy on tenant departures has been decided yet, and tenants are watching closely for the outcome of the commission's planned consultations.

Those consultations are unlikely to happen immediately, however. The Fair Trade Commission said most Homeplus employees are currently on leave, making negotiations impossible for now. Industry sources say talks are more likely to begin after the 67 stores reopen around Aug. 10.

In the meantime, tenant operators are growing increasingly anxious as routine contract procedures continue to move forward. Kang Gyeong-mo, vice chairman of the Homeplus Tenant Operators Association, said tenants whose contracts expire at the end of August are already receiving electronic documents for signature that explicitly include the restoration obligation. "We are worried about what penalties might await us if we don't sign by the deadline," Kang said.