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  • Homeplus goes dark, exposing the cost of Koreas biggest retail buyout
    Homeplus goes dark, exposing the cost of Korea's biggest retail buyout SEOUL, July 14 (AJP) - Homeplus, once South Korea's second-largest hypermarket chain and a symbol of the country's modern retail boom, switched off the lights across its remaining stores on Monday after running out of cash, leaving roughly 12,000 employees, hundreds of suppliers and thousands of shopping mall tenants caught in what is becoming Korea's biggest retail collapse in decades. The nationwide shutdown marks the dramatic end of a company that once challenged E-mart for industry leadership and highlights the collision of three powerful forces reshaping the country's economy: the relentless rise of e-commerce, the long shadow cast by debt-fueled private-equity ownership and a bankruptcy system that often leaves workers and small businesses paying the highest price. Homeplus said it had exhausted the funds needed not only to purchase merchandise but also to pay electricity bills and other basic operating expenses, forcing it to suspend operations at its headquarters and all remaining hypermarkets. "Our operating funds are completely depleted, leaving us unable to cover merchandise payments or even the utility costs and other running expenses needed to keep stores open," the company said in a statement. Although tenants operating inside Homeplus shopping malls may continue trading independently if they choose, the closure effectively ends normal retail operations while the company waits to decide whether to appeal a court ruling that terminated its rehabilitation proceedings. The shutdown follows a Seoul court's July 3 decision to end Homeplus' corporate rehabilitation. The court left a narrow path for revival, saying it would reconsider if the retailer secured a 200 billion won ($133.9 million) emergency loan by the July 20 appeal deadline. With neither new financing nor a strategic investor emerging, that prospect has faded rapidly. Only two months ago, Homeplus still operated 67 stores after shutting 37 of its 104 outlets. Over the weekend, desperate clearance sales offering discounts of more than 50 percent drew long checkout lines but failed to generate enough cash to change the company's fortunes. Workers accuse MBK of abandoning the retailer Whatever hope remained disappeared Tuesday morning when MBK Partners abruptly canceled scheduled talks with Homeplus' labor union only hours before the first face-to-face meeting since the shutdown. Union leaders had planned to press MBK Vice Chairman Kim Kwang-il to provide emergency funding and support an appeal against the court's ruling. Instead, workers accused the buyout firm of abandoning both the retailer and its employees. "We still want to see Homeplus put back on its feet, and the best outcome would be a new owner through a fresh merger or acquisition," said Choi Cheol-han, general secretary of the Homeplus branch of the Korea Mart Labor Union. "For that to happen, extending the rehabilitation process beyond next week's deadline is absolutely essential." The union vowed to intensify protests after the canceled meeting. "An arrest warrant for MBK Chairman Kim Byung-ju and Vice Chairman Kim Kwang-il was sought once and dismissed, but we believe prosecutors should seek one again," Choi said. "Most importantly, the government needs to regulate leveraged buyouts more actively so other companies do not suffer the same fate." On Monday, union members rallied outside the former presidential compound in central Seoul, where one union leader attempted to approach the gates before police restrained him. Protesters accused the government of allowing speculative capital to destroy one of the country's largest retailers while standing aside. "The government says it will spend 500 billion won or even 1 trillion won after Homeplus is liquidated," Choi said. "But you should be paying for treatment while the patient is alive, not covering the funeral costs after death." Small merchants fear losing everything Employees are not the only victims. About 100 tenant merchants operating inside Homeplus shopping malls plan to stage their own protest Wednesday, arguing they had no role in decisions made by MBK Partners, Homeplus or creditors but now risk losing businesses built over decades. "We're different from the union. We invested our own money," a spokesperson for the National Association of Homeplus Tenant Merchants told AJP. "We had no say in the decisions made among MBK, Homeplus and Meritz, yet we may lose our livelihoods, which for many of us represent our life's savings." Many tenants said they still hope a new owner emerges rather than liquidation. "The company that exploited loopholes in the law bears responsibility," the spokesperson said. "But those who allowed those loopholes to exist also have responsibility. That's why we're protesting." From Samsung-Tesco success to private-equity casualty Homeplus' collapse began long before this year's cash crisis. The retailer started life in 1997 as Samsung C&T's retail business, opening its first hypermarket in Daegu before forming a joint venture with Britain's Tesco in 1999. The partnership transformed Homeplus into one of Korea's largest discount chains, competing head-to-head with Shinsegae's E-mart during the peak years of the hypermarket boom. At its height, the company operated roughly 140 stores nationwide. Everything changed in 2015. Struggling with financial problems at home, Tesco sold Homeplus to MBK Partners for approximately 7.2 trillion won, then the largest merger-and-acquisition deal in South Korean history. What was once celebrated as a landmark private-equity transaction has increasingly become a cautionary tale. Critics argue the debt used to finance the acquisition forced Homeplus into years of asset disposals just as Korean consumers shifted rapidly toward online shopping. While rivals invested heavily in digital platforms, logistics and store renovations, Homeplus was selling prime properties and using proceeds to reduce debt. By the time e-commerce permanently reshaped Korean retail, the company no longer had sufficient capital to reinvent itself. Who gets paid — and who doesn't If Homeplus ultimately files for bankruptcy rather than reviving rehabilitation, the consequences will extend far beyond employees. Under Korean insolvency law, a court-appointed receiver would liquidate company assets and distribute proceeds according to legal priority. Secured creditors would be repaid first. That hierarchy leaves many suppliers, particularly smaller businesses, facing potentially severe losses. Meritz Financial Group and other lenders hold collateral over many of Homeplus' properties, including roughly 1.3 trillion won in senior secured loans. Industry estimates suggest around 40 percent of Homeplus' roughly 800 suppliers are each owed more than 500 million won, with average exposure approaching 770 million won. Unlike rehabilitation, where unpaid invoices might eventually be recovered through continued business operations, bankruptcy would leave suppliers relying entirely on proceeds from asset sales after secured lenders are paid. Homeplus also owns approximately 62 store properties outright. If they are sold simultaneously, they could significantly increase supply in Korea's already sluggish commercial real estate market. "The unpaid bills owed to tenant businesses will become a very serious issue," said Jung Heung-jun, a professor specializing in labor relations at Seoul National University of Science and Technology. "The situation for employees may not be much easier either. Judging by MBK's conduct so far, I don't expect it to voluntarily assume moral responsibility beyond whatever legal obligations exist." "If roughly 12,000 workers lose their jobs, there is effectively no meaningful safety net beyond unemployment benefits," he added. "The prime properties have already largely been sold. Even if remaining stores are eventually acquired by companies such as E-mart or Lotte Mart, it's doubtful that would fully cover workers' wage claims." "MBK had opportunities to restore Homeplus' health," Jung said. "It is difficult to imagine the firm now accepting responsibility for preserving jobs at its own expense." Why Homeplus matters The collapse of Homeplus represents more than the failure of another retailer. It marks the end of an era for Korea's hypermarket industry while raising broader questions about the limits of leveraged buyouts, the social costs of corporate restructuring and whether existing insolvency rules adequately protect workers and small businesses. Meanwhile, the retail landscape has fundamentally changed. South Korea's online shopping market expanded to roughly 271 trillion won in 2025, with Coupang and Naver dominating grocery delivery and everyday consumer spending. E-mart and Lotte Mart survived by investing in private-label products, experiential retailing, omnichannel strategies and digital integration. Homeplus, burdened by acquisition debt and years of asset sales, lacked both the capital and the time to make the same transformation. The company said it will monitor developments until the July 20 appeal deadline before deciding whether to seek another chance at rehabilitation. Yet with MBK Partners and creditor Meritz Financial Group deadlocked over fresh financing, workers and merchants protesting in the streets, and confidence evaporating among suppliers, few industry observers believe the retailer can be revived in its current form. Even if a new owner eventually emerges, they say, Homeplus is unlikely ever again to become the national retail powerhouse that once stood shoulder to shoulder with E-mart. 2026-07-14 15:08:44
  • Song Young-gil Questions Need for Opposition to Preferred Voting System
    Song Young-gil Questions Need for Opposition to Preferred Voting System Song Young-gil, a candidate for the leadership of the Democratic Party of Korea, expressed skepticism about the need to oppose the recently approved preferred voting system. He stated, "President Lee Jae-myung also posted on X (formerly Twitter) that it was his initiative, so I wonder if there was really a need to oppose it."During a press briefing at a party meeting on the same day, Song remarked, "The preferred voting system passed as I argued it would."He added, "If no candidate receives a majority of votes at the party convention on August 17, we will have to vote again a week later in the heat of summer. It won't be easy to secure a time and place for that." He emphasized that if a one-on-one matchup occurs in the runoff, it could lead to intense competition between candidates.Earlier that day, the party's Supreme Council approved the preferred voting system. In response, Lee Seong-yun, a member of the pro-Lee faction, resigned from his position on the Supreme Council.The preferred voting system allows voters to list their top three preferred candidates on a single ballot. If a candidate receives a majority of first-choice votes in the first round, they are declared the winner. However, if no candidate achieves a majority, the votes are tallied for subsequent choices to determine the winner. Some analysts suggest this method may favor the pro-Lee faction.In response, former leader Jung Cheong-rae stated on Facebook that he "accepts it coolly." During the party convention process, Song Young-gil and former Prime Minister Kim Min-seok are seen as working to counter Jung.Meanwhile, the proposal for a youth supreme committee did not pass the Supreme Council. In relation to this, Song stated, "Regardless of the system, if I become party leader, I will appoint two members from the 2030 generation to the Supreme Committee." 2026-07-14 15:08:00
  • President Lee Conducts Real-Time Poll on High-Value Homes During Cabinet Meeting
    President Lee Conducts Real-Time Poll on High-Value Homes During Cabinet Meeting President Lee Jae-myung conducted a real-time public opinion poll on the burden of owning high-value homes during a Cabinet meeting on July 14. The poll utilized the comment feature of a YouTube live stream.He stated that the primary goal of the upcoming real estate tax reform, expected to be announced by the end of this month, is to normalize the tax system.During the meeting at the Blue House, after receiving a report on the 'Public Opinion Collection Plan on Real Estate Policy,' President Lee remarked, "Everyone agrees that those who own a single home for actual residence should not suffer. However, there is controversy over whether it is appropriate to impose the same burden on high-value homes, such as those worth over 10 billion won or the so-called 'one good house.'"He then suggested that viewers of the live stream indicate their opinions by pressing '1' if they believe high-value homes should face greater burdens, and '2' if they disagree.Shortly after, Lim Gi-geun, head of the Office for Government Policy Coordination, reported that "most comments were '1', with about 90% in favor." In response, President Lee noted, "It seems there is general agreement on strengthening the burden on high-value homes, even for those who own a single residence."President Lee also proposed a survey on what amount should classify a home as high-value, asking viewers to press '1' for homes over 1 billion won, '2' for over 2 billion won, and '3' for over 3 billion won.When Lim reported that many viewers indicated 3 billion won as the threshold, President Lee jokingly asked, "Isn't that too harsh? At a market value of 3 billion won, isn't the official price only about 1 billion won?"When Kim Yong-beom, head of the Policy Office, mentioned that many responded with 2 billion won, President Lee laughed again, saying, "If we set it at 2 billion won, we might be in big trouble."Regarding the discussion on real estate tax, President Lee emphasized, "It is not true that we are imposing taxes to control housing prices. The most important thing is equitable taxation, and controlling housing prices is a secondary effect."He added, "The current tax system is significantly distorted, which has led to factors that encourage real estate speculation. Normalizing this is our primary goal."* This article has been translated by AI. 2026-07-14 15:08:00
  • Court Suspends Designation of Kim Beom-seok as Coupangs Owner
    Court Suspends Designation of Kim Beom-seok as Coupang's Owner The court has temporarily suspended the Fair Trade Commission's designation of Kim Beom-seok as the 'owner' of Coupang Inc. The Seoul High Court's Administrative Division 7, led by Judge Kwon Soon-hyung, partially granted Coupang and Kim's request for a stay of the commission's designation on July 14. The court stated that the effect of the commission's designation change from May 1 would be suspended until 30 days after the ruling on the main case. The effect of the commission's request for document submission regarding Chairman Kim, made on April 8, will also be suspended for the same period. The court noted, "There is an urgent need to prevent irreparable harm to Coupang," adding, "There is no evidence to suggest that the suspension would be contrary to the public interest." On April 29, the Fair Trade Commission changed Coupang's designation from a corporate entity to an individual, identifying Chairman Kim as the owner. This decision was based on the involvement of Kim's brother, Kim Yoo-seok, in Coupang's management, which disqualified the company from being designated as a corporate entity under the exception criteria. Coupang argued that "Chairman Kim and his relatives do not hold shares in Korean affiliates, so there is no concern for private gain," and filed a lawsuit against the commission's decision.* This article has been translated by AI. 2026-07-14 15:08:00
  • Public Reaction Divided Over Yoo Ah-ins Appearance at Hope Premiere
    Public Reaction Divided Over Yoo Ah-in's Appearance at 'Hope' Premiere Actor Yoo Ah-in, whose probation was confirmed following drug use charges, was spotted at the premiere of director Na Hong-jin's new film 'Hope.'On July 13, various social media platforms and online communities shared videos of Yoo attending the film's screening. The footage shows Yoo, wearing a cap pulled low, arriving with director Jang Jae-hyun of the film 'Burial.' Notably, the video captures Yoo greeting attendees in a relaxed manner.This sighting has garnered significant attention as Yoo prepares for his return to acting. Previously, he confirmed his participation in Jang's upcoming film 'Vampire.' Although casting rumors first emerged in December 2022, Jang initially denied them before Yoo's involvement was officially announced.Following the sighting, opinions on Yoo's return have been sharply divided online. Some users expressed disappointment, stating, 'Now I understand why Korean cinema is failing,' and 'There are many talented actors; does it have to be Yoo Ah-in?' Others countered, 'Why is Yoo Ah-in being held to stricter standards than other celebrities involved in drug controversies?' and 'He has been sentenced and punished; shouldn't he be allowed to return?' Yoo was released from Seoul Detention Center on February 2 after a second trial ruling. He faced charges for using propofol 181 times between 2020 and 2022 and illegally obtaining sleeping pills under another person's name 44 times. He is also accused of smoking marijuana in Los Angeles in 2023 and encouraging others to smoke as well.In the first trial, he received a one-year prison sentence and was taken into custody. However, the second trial overturned the original ruling and granted him probation, a decision later upheld by the Supreme Court.The film 'Vampire,' in which Yoo is set to star, is an occult story set against the backdrop of the Russian Orthodox Church, featuring a vampire hunter, a priest, and other intertwined characters. Alongside Yoo, actors Lee Sung-min and Yoon Kyung-ho will also appear. This film marks Jang Jae-hyun's first project since the blockbuster 'Burial' and is expected to serve as Yoo's comeback film.* This article has been translated by AI. 2026-07-14 15:04:00
  • British Princess Anne tours HD Hyundai Heavy shipyard in Ulsan
    British Princess Anne tours HD Hyundai Heavy shipyard in Ulsan SEOUL, July 14 (AJP) - Britain's Princess Anne visited HD Hyundai Heavy Industries' shipyard in Ulsan and toured its facilities, the shipbuilder said on Tuesday. Her visit, accompanied by her husband Sir Timothy Laurence and Colin Crooks, the British ambassador to South Korea, came as part of her trip to South Korea. The princess was welcomed by the shipbuilder's chairman Chung Ki-sun, and other executives, who briefed her on the company's shipbuilding technology and competitiveness while discussing cooperation in the shipbuilding and marine industries with British defense and engineering companies including Rolls-Royce and Beaufort. Her visit came as the British government is seeking to foster its shipbuilding and marine industries, some 43 years after she first formed ties with the shipbuilder’s late founder Chung Ju-yung. Rolls-Royce has worked with HD Hyundai Heavy Industries since 2012, providing its MT30 gas turbine for naval vessels. HD Hyundai integrates the turbine into propulsion packages, which are used in the South Korean Navy's next-generation frigates. Beaufort has worked with HD Hyundai Heavy Industries since 2013, supplying survival equipment for naval crews including life-saving equipment for submarines. Chung said the U.K. has been a "special partner" of HD Hyundai since the beginning, adding that the company will help develop the U.K.'s shipbuilding and marine industries by sharing its technology and expertise. Anne, who turned 75 in August last year, is the only daughter of the late Queen Elizabeth II and Prince Philip and the younger sister of King Charles III. She has held the title of Princess Royal since 1987. She is scheduled to attend several events including a courtesy visit to President Lee Jae Myung at Cheong Wa Dae in Seoul later in the day, before leaving for Thailand the following day as part of her Asia trip. 2026-07-14 15:01:44
  • Samsung wins eight Red Dot Design Awards, including two top honors
    Samsung wins eight Red Dot Design Awards, including two top honors SEOUL, July 14 (AJP) - Samsung Electronics said Monday it received eight awards, including two "Best of the Best" honors, in the Design Concept category at the Red Dot Design Award 2026, one of the world's major international design competitions. The company's top-winning entries were Samsung Home Appliances Accessories, a concept that uses color coding to help users identify how appliance consumables should be reused, recycled or disposed of, and Dremo & Minimo, an AI-powered children's robot concept designed to provide personalized interactions based on a child's interests and stage of development. The home appliance accessories concept has also received top honors at the iF Design Award 2026 and the IDEA Design Award 2024, making it a winner across the three major international design competitions. Samsung also received six Winner awards for AI-based design concepts, including Beauty Mirror, Panorama UX, AI Kitchen, Spatial Tab, PUCO and Fluid AI Design System. The concepts span personalized beauty care, adaptive user interfaces, AI-assisted home services, conversational 3D platforms and generative AI-powered interface design. Established in Germany in 1955, the Red Dot Design Award recognizes excellence in product design, design concepts, and brand and communication design. 2026-07-14 15:01:33
  • International Oil Prices Surge Past $80 Amid U.S.-Iran Tensions
    International Oil Prices Surge Past $80 Amid U.S.-Iran Tensions International oil prices have surged to their highest level in four weeks as tensions between the United States and Iran escalate over shipping routes in the Strait of Hormuz. West Texas Intermediate (WTI) crude approached $80 per barrel, while Brent crude neared $85.According to Bloomberg, as of 2:37 PM Korean time on July 14, Brent crude for September delivery rose by $0.92 (1.10%) to $84.22 per barrel. At the same time, WTI for August delivery traded at $79.08, up $0.94 (1.20%). WTI briefly surpassed $80 during the trading session but later retreated below that mark.This increase in oil prices marks the highest level since the U.S. and Iran reached a preliminary agreement to end hostilities on June 17. The previous day, Brent crude had surged by 9.6%, closing at $83.30 per barrel, the largest single-day increase since May 2020. WTI also saw a 9.4% rise, finishing at $78.14.The recent spike in oil prices is attributed to escalating airstrikes and retaliatory attacks between the U.S. and Iran over vessels transiting the Strait of Hormuz, raising concerns about potential disruptions to oil supply. The U.S. Central Command (CENTCOM) reported on July 13 that it had targeted multiple sites in Iran, including Bushehr, Chabahar, Jask, Konarak, Abu Musa, and Bandar Abbas. In response, the Iranian Revolutionary Guard Corps (IRGC) claimed to have attacked two UAE oil tankers passing through the Strait, alleging they were operating on an 'illegal route' under U.S. guidance.Additionally, the U.S. military announced it would resume maritime blockades against Iran starting at 5 AM Korean time on July 15. President Donald Trump also stated that a fee equivalent to 20% of the cargo value would be imposed for ensuring the safety of vessels passing through the Strait.The Strait of Hormuz is a critical maritime chokepoint, with approximately 20% of the world's energy supply passing through it. Market analysts warn that prolonged disruptions in the Strait could lead to further increases in international oil prices and inflationary pressures.* This article has been translated by AI. 2026-07-14 15:00:00
  • Homeplus Union Meeting with MBK Partners Canceled Amid Store Closures
    Homeplus Union Meeting with MBK Partners Canceled Amid Store Closures Homeplus's union and its major shareholder, MBK Partners, had a scheduled meeting canceled on the same day.According to the Homeplus branch of the Korean Confederation of Trade Unions, a meeting with MBK Partners Vice Chairman Kim Kwang-il, set for 3 p.m. at Homeplus's headquarters in Gangseo-gu, Seoul, was called off. MBK informed the union by phone on the morning of July 14 that the meeting would be postponed and that a new date would be arranged.Previously, the union had secured a meeting with Vice Chairman Kim after staging a sit-in protest at MBK's headquarters on July 10. The union intended to demand the procurement of 200 billion won in emergency operating funds and an immediate appeal against the decision to terminate the rehabilitation process.The union has sent a formal inquiry to MBK regarding the cancellation and plans to hold a press conference.Meanwhile, Homeplus has temporarily suspended operations at its stores nationwide since July 13 due to a lack of operating funds. This decision follows the failure to secure emergency operating funds after the termination of the rehabilitation process, making normal operations unfeasible.* This article has been translated by AI. 2026-07-14 15:00:00
  • Homeplus Faces Chaos Amid Sudden Temporary Closures
    Homeplus Faces Chaos Amid Sudden Temporary Closures On July 14, the entrance to the Homeplus store in Gangdong was eerily quiet. Normally bustling with customers shopping and employees scanning items at the checkout, the entrance was blocked by dozens of shopping carts and a notice announcing a "temporary closure." On the second day of Homeplus's temporary closure across all its stores, customers continued to arrive unaware of the shutdown. In just over a minute, about ten customers approached the entrance only to turn back after reading the notice. A housewife who arrived at the store at 10 a.m. said, "I didn’t expect the Gangdong store to close since it was still operating when some stores shut down two months ago," expressing her surprise. The confusion caused by the sudden closure affected not only customers but also employees. Reports indicate that staff were not properly informed about the shutdown until just before their shifts. One employee stated, "We were unable to enter the store from 7 a.m. the previous day, and the notice about the temporary closure was posted on the company bulletin board around 9 a.m. Only a few staff members remained while others packed up and left." The employee added, "There has been no separate notice regarding future work schedules, so we are checking with each other about our shifts." The closure of the store also affected the cultural center, where students flocked to request refunds. Before 10 a.m., a line formed at the cultural center's information desk as students filled out cancellation forms. Amid the incessant ringing of phones, the staff was busy explaining refund policies to the students. One customer enrolled in a children's art class said, "I only received a text saying that the summer semester classes were temporarily suspended," adding, "I came in person to request a refund since there’s no set period for the suspension." On July 13, Homeplus announced the temporary closure of 67 large stores due to a lack of operating funds. The company plans to decide whether to resume operations after monitoring its financial situation and the court's ruling on the deadline for an immediate appeal against the decision to terminate its rehabilitation process, which is set for July 20. However, there is growing concern in the industry that the company may be heading toward bankruptcy, as major shareholder MBK Partners and the largest creditor, Meritz Financial Group, have yet to reach an agreement on securing 200 billion won in operating funds. Some speculate that the court may expedite the bankruptcy process before the appeal period ends, a procedure known as "related bankruptcy," which occurs when the court determines that there is no possibility of rehabilitation and seeks to protect public creditors. Ryu Geun-rim, secretary of the Homeplus General Labor Union, stated, "Currently, only 8 to 10 staff members remain at each store for customer service and safety management," adding, "In some regional stores in Gangwon, Daegu, and Jeonnam, there are even warnings of power outages after July 20." He further noted, "The company has only paid 40% of June salaries and has not announced when the remaining salaries and severance payments will be made," urging the company to take responsible action. Meanwhile, the Homeplus union plans to hold protests in front of Meritz Financial in Yeouido on July 15 and in front of MBK Partners in Gwanghwamun on July 16. A meeting scheduled for the afternoon of July 14 with Kim Kwang-il, vice chairman of MBK Partners, at the Homeplus headquarters in Gangseo was canceled after MBK notified the union of a postponement. The union intended to demand the urgent provision of 200 billion won in operating funds and an immediate appeal against the decision to terminate the rehabilitation process during the meeting. 2026-07-14 15:00:00