Homeplus Submits Revised Rehabilitation Plan, Aiming for 150 Billion Won Profit in Three Years

Homeplus announced on June 29 that it has submitted a revised rehabilitation plan to the Seoul Bankruptcy Court.

The company entered rehabilitation proceedings in March 2025 and has since been restructuring its stores and business operations. Homeplus has reduced its number of large stores from 126 to 67 core locations and negotiated rent adjustments with landlords. Additionally, it sold its supermarket division, Homeplus Express, to NS Shopping, a subsidiary of Harim Group.

Homeplus stated that these efforts have significantly improved its cost structure. The company reported that it has reduced its workforce by about 50% through voluntary retirements and cut various costs by approximately 1.2 trillion won compared to the period before its rehabilitation filing.

The company believes that normalizing product supply and operations will allow for revenue recovery. Homeplus asserted that the 67 core stores could achieve operating profits of around 80 billion won if supply and sales stabilize, with the potential to increase to 150 billion won within three years.

The revised rehabilitation plan reflects these anticipated improvements in business performance. Homeplus plans to fully repay both public and rehabilitation creditors using profits from its turnaround and proceeds from the sale of real estate from closed stores.

However, the company faces challenges in implementing the rehabilitation plan if it cannot secure 200 billion won needed for wages, supplier payments, and restructuring efforts.

The deadline for the approval of Homeplus's rehabilitation plan is July 3.