Homeplus reopens all 67 stores after securing W200b in emergency funds

Homeplus, which has been undergoing court receivership proceedings, officially resumed operations at all 67 of its stores nationwide after securing 200 billion won ($141 million) in emergency operating funds from Meritz Financial Group.

Since the Homeplus crisis began, the government has provided workers with unemployment benefits, wage advances and livelihood support loans, while supplying more than 5 trillion won in liquidity to suppliers through bank loan extensions and repayment deferrals.

Vice Minister Kang Ki-ryong of the Ministry of Economy and Finance convened a government task force meeting Friday at Government Complex Seoul, bringing together officials from the Ministry of Trade, Industry and Energy, the Ministry of Employment and Labor, the Ministry of SMEs and Startups, the Financial Services Commission and the Financial Supervisory Service to review the reopening and the support provided to workers and suppliers.

Homeplus channeled the 200 billion won in emergency operating funds — secured from Meritz Financial Group on Aug. 5 — into paying overdue wages and preparing for reopening. The chain held a soft reopening the following Friday before formally resuming full operations at all 67 stores on Thursday.

The government has continued to support Homeplus workers and suppliers since the court initiated receivership proceedings last March.

From March 4 last year through Wednesday, a total of 24,648 cases of unemployment benefits and wage-advance payments were processed for workers, amounting to 35.9 billion won. Livelihood and living-stability loans for workers with unpaid wages totaled 9,091 cases worth 41.9 billion won.

Breaking down the figures, unemployment benefits covered 24,642 cases totaling 35.8 billion won. Livelihood loans for unpaid-wage cases amounted to 8,960 cases worth 41.2 billion won, while living-stability loans accounted for 131 cases totaling 700 million won. In addition, 6,055 cases of job-placement assistance and 444 cases of psychological counseling and employment-skills support were provided.

Support for suppliers was considerably larger. Emergency business-stabilization funds channeled through the Korea Federation of Small and Medium Business and the Korea SMEs and Startups Agency totaled 277 cases worth 11.6 billion won.

Banks extended or deferred repayment on 8,167 loans to Homeplus suppliers between March 4 last year and Friday, covering 5.44 trillion won. Lenders also extended 121 new emergency loans totaling 30.9 billion won.

Guarantee support through the Korea Credit Guarantee Fund and the Korea Technology Finance Corporation also continued. From the announcement of the Homeplus worker and supplier support package on July 3 through Wednesday, the two agencies issued a combined 70 guarantees worth 48.4 billion won — 65 cases totaling 46.7 billion won from the Korea Credit Guarantee Fund and five cases totaling 1.7 billion won from the Korea Technology Finance Corporation.

With Homeplus back in operation, the government said it will monitor the retailer's sales and store operations while continuing to support workers and suppliers.

Task force participants agreed to keep a close watch on Homeplus's business performance and to sustain whatever assistance is needed to protect workers' livelihoods and stabilize suppliers' operations.