Homeplus, facing financial difficulties, is at risk of power cuts due to unpaid electricity bills. If power is cut, businesses operating within its stores will also have to cease operations.
According to Yonhap News on October 26, six Homeplus locations (Pocheon Songwoo, KINTEX, Goyang Terminal, Namyangju Jinjeop, Paju Unjeong, and Gajwa) have received notices from Korea Electric Power Corporation (KEPCO) about impending power cuts. The cuts are expected to occur between October 27 and 30, with the Incheon Songdo location also facing a power cut next month.
KEPCO's electricity supply regulations state that if electricity bills are unpaid for two months, a power cut notice is issued. If the delinquency extends to three months or more, actual power supply may be suspended. However, KEPCO may defer the power cut depending on the circumstances.
Homeplus entered corporate rehabilitation proceedings in March 2022 and received approval for its rehabilitation plan from the Seoul Bankruptcy Court on September 2. However, its financial situation remains precarious. Recently, due to a lack of operating funds, the company has had to pay some employee wages in installments, and it is struggling to cover basic operational costs, including electricity bills. As a result, it may be challenging to settle the overdue electricity payments in the short term.
The situation is particularly concerning for small businesses located within Homeplus stores. Approximately ten businesses, including a hair salon at the Goyang Terminal location, hope to continue operations. If KEPCO proceeds with the power cut, Homeplus will have to halt operations for the entire building due to fire safety issues, making it difficult for both the supermarket and the tenant businesses to continue operating.
A Homeplus representative stated, "If KEPCO implements the power cut, we will not be able to operate."
* This article has been translated by AI.
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