Homeplus, which is undergoing a corporate rehabilitation process, has received power shutdown warnings from Korea Electric Power Corporation (KEPCO) due to unpaid electricity bills.
According to the retail industry on the 26th, several Homeplus stores in the Seoul metropolitan area are facing power shutdowns: the Pocheon Songu store on the 27th, the KINTEX, Goyang Terminal, and Namyangju Jinjeop stores on the 28th, the Paju Unjeong store on the 29th, and the Gajwa store on the 30th. The Incheon Songdo store is also expected to face a shutdown next month.
In Busan, four stores—Centum City, Busan Banyeo, Yeongdo, and West Busan—have received similar warnings. While operations at these large supermarket locations have ceased, some tenants within the buildings continue to operate.
The issue is that Homeplus's failure to pay electricity bills could lead to the suspension of operations for tenant businesses. Some stores, including a hair salon at the Goyang Terminal, still have businesses trying to continue operations.
If power is cut, it could disrupt the normal operation of fire safety systems, potentially halting all business activities in the buildings. Tenant businesses would also struggle to continue operations, and employees might face layoffs.
Homeplus's financial situation remains dire. The company is unable to pay employee wages, which amount to around 20 billion won per month, in full and is instead making partial payments. This raises concerns that it may be difficult to pay overdue electricity bills on time, leading to the possibility of more stores receiving power shutdown warnings.
According to KEPCO's electricity supply terms, a power shutdown warning is issued after two months of unpaid bills, and actual power supply can be cut off after three months of non-payment. However, a shutdown does not occur immediately after the warning date has passed.
KEPCO plans to hold a meeting to decide whether and when to implement the power shutdown, during which they will also consider the opinions of tenant businesses. There remains a possibility that the actual shutdown could be postponed.
Homeplus received approval for its rehabilitation plan from the Seoul Bankruptcy Court on September 2 and is working on store sales and management normalization.
However, even after the court's approval, the company continues to struggle with basic operational costs such as electricity bills and wages, complicating its path to recovery.
* This article has been translated by AI.
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