Homeplus farm produce sales halved amid restructuring, with growers bearing the cost

Homeplus, currently undergoing corporate rehabilitation, has cut purchases of domestic farm, fishery and livestock products by more than half this year due to a shortage of operating funds, raising urgent calls for government action as the damage to farming households mounts.

Data obtained by Rep. Song Ok-ju of the Democratic Party of Korea, a member of the National Assembly's Agriculture, Food, Rural Affairs, Oceans and Fisheries Committee, from the Ministry of Agriculture, Food and Rural Affairs, Homeplus, NH Agri Business Holdings, the Korea Agri-Food Corporation Association and the NH cooperative corporation show that Homeplus recorded 248.7 billion won ($179 million) in sales of domestic farm, fishery and livestock products in the January–May period this year.

That figure represents a decline of more than 55 percent compared with the same period last year (572.1 billion won) and in 2024 (553.5 billion won). The shortfall points to an unavoidable retail gap of 1.3 trillion won — the amount Homeplus had distributed in domestic farm, fishery and livestock products over the same period in both last year and 2024.

Homeplus had long accounted for a significant share of farm sales. In 2024, the three major hypermarket chains together purchased 2.51 trillion won worth of domestically grown fruit and vegetables, of which Homeplus bought 527.2 billion won — a 21 percent share. The chain held roughly 6 percent of the domestic fresh produce retail market.

Milk sales have also taken a hit. The Ministry of Agriculture, Food and Rural Affairs estimates that Homeplus's daily intake of dairy products — measured in raw milk equivalent — fell from 140 tons before the chain's business contraction to 70 tons in January and further to 40 tons in June. That amounts to the disappearance of a retail market for 100 tons of domestic milk per day, equivalent to 2.5 percent of total domestic milk sales.

Unpaid supplier bills present another unresolved problem. According to a letter the Korea Agri-Food Corporation Association sent to Rep. Song's office last month, outstanding payments to suppliers in the retail sector reached 135.5 billion won in the case of Tmon and WeMakePrice in July 2024, 26 billion won for Green Village in July 2025, and 200 billion won for Homeplus in March 2025. Producer groups at the source of supply said unpaid receivables owed to NH cooperatives and agricultural corporations by Homeplus stood at 30.3 billion won and 75.9 billion won, respectively, as of the end of July this year.

"The Homeplus crisis is creating a distribution gap for domestic farm, fishery and livestock products," Song said. "Homeplus was a major market that supplied 1.3 trillion won worth of domestic farm, fishery and livestock products annually and supported 100,000 jobs. I will work to revive that market so that producers at the source are not left without outlets for their goods."