The potential closures span major metropolitan areas, including Seoul, Incheon, and Busan, and affect stores in Gayang, Ilsan, Siheung, Jamsil, and other key commercial districts. An estimated 200 to 300 small businesses operate across the affected stores, typically with 10 to 30 vendors per location.
Roughly half of those vendors are brand franchisees; the remainder are independent operators, many of whom lack the legal protections afforded to traditional retail tenants.
As vendors within large discount chains, they occupy a regulatory gray area, leaving them without access to compensation for key money — a standard practice in South Korean commercial leasing.
Homeplus entered corporate rehabilitation proceedings last month, a process that has already led to noticeable declines in customer traffic and revenue. Several vendors report sales drops of 20 to 30 percent since the announcement, and many say they are unsure whether they can continue operating.
Communication from Homeplus management has been sporadic, according to affected vendors. Some say they learned of the potential closures through media coverage rather than official notice, further fueling frustration and anxiety.
At the center of the crisis are protracted negotiations with landlords — primarily real estate investment trusts — over significant rent reductions and lease transfer terms for sub-tenants.
Homeplus is reportedly seeking rent cuts of up to 50 percent. The impasse has already delayed key milestones in the company’s rehabilitation timeline, including required reporting to the court.
reporter
Kim Dong-young
davekim0807@ajupress.com
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