Six closed Homeplus stores warned of power cutoff by Korea Electric Power

Six Homeplus stores have received advance notice of a power cutoff from Korea Electric Power Corporation after failing to pay their electricity bills.

According to the retail industry, the Pocheon Songwu, Kintex, Goyang Terminal, Namyangju Jinjeop, Paju Unijeong and Gajwa branches face a cutoff between Tuesday and Friday. The Incheon Songdo branch has also been warned of a cutoff sometime in November.

Under Korea Electric Power Corporation's supply terms, the utility issues a cutoff warning when bills go unpaid for two months. Actual power supply can be suspended after three or more months of nonpayment, though the company may defer the cutoff rather than act immediately.

All six stores have in effect already closed and are no longer operating, but each is believed to still have around 10 tenant businesses remaining.

If Korea Electric Power Corporation proceeds with the cutoff, those tenants will be unable to operate. Under fire safety regulations, the entire building would be required to suspend operations and shut down.

Homeplus is unlikely to be able to pay its overdue electricity bills. The company's finances have deteriorated to the point where it has had to pay some employees their wages in installments. "If Korea Electric Power cuts the power, we will not be able to operate," a Homeplus official said.