A notice announcing the suspension of operations is posted at a Homeplus store in Gyeyang District, Incheon, Feb. 1. Yonhap
MBK Partners has extended a total of 100 billion won ($68 million) in emergency debtor-in-possession financing to Homeplus to help stabilize the retailer’s operations, the company said Wednesday.
The private equity firm provided 50 billion won, following its initial provision of 50 billion won on March 4, completing the full amount.
Homeplus entered court-led rehabilitation in March 2025 and has yet to secure a clear path toward a full business turnaround.
On March 3 this year, just one day before the original deadline, the Seoul Bankruptcy Court granted a two-month extension for creditors to approve the company’s rehabilitation plan. Without the extension or approval of the plan, the country’s second-largest supermarket chain could have faced the possibility of bankruptcy or liquidation proceedings.
The latest funding support follows the court’s decision to extend the deadline.
The funding was arranged after MBK Chairman Michael ByungJu Kim secured a 100 billion won loan from Woori Financial Group using personal assets, including his residence, as collateral. The borrowed funds were subsequently lent to Homeplus.
The capital will be used to meet urgent operational needs such as paying employee wages and settling payments owed to suppliers.
If Homeplus restores normal operations and successfully exits the rehabilitation process, the loan will be treated as a public-interest claim, which takes priority in repayment.
However, MBK did not require collateral for the loan and has pledged not to seek repayment if the rehabilitation plan ultimately fails to gain court approval and the rehabilitation process is discontinued.
Source: Korea Times News
