Homeplus Secures 200 Billion Won Emergency Funds After Two-Week Union Protest

Homeplus secured 200 billion won in emergency operating funds on the 16th, preventing immediate bankruptcy following a court decision to cancel its rehabilitation procedure. Meritz Financial Group provided the funding with full joint guarantees from Kim Byung-joo and MBK Partners, after three Meritz subsidiaries approved the deal via board meetings. The Homeplus General Labor Union held a two-week vigil outside Meritz Securities headquarters starting the 3rd, erupting in celebration when union leader Lee Jong-seong announced the funding agreement.

Meritz Financial Approves 200 Billion Won DIP Funding

Meritz Securities, Meritz Capital, and Meritz Fire Insurance each held board meetings on the 16th to approve the emergency operating funds. The deal structured Meritz Financial Group as the primary creditor, with Kim Byung-joo and MBK Partners providing full joint guarantees for the 200 billion won. The funding came after negotiations nearly collapsed, providing Homeplus with minimum operational liquidity to continue business operations.

Union Workers Celebrate After Two-Week Protest

Homeplus General Labor Union members maintained a continuous presence outside Meritz Securities headquarters in Yeouido for two weeks, enduring rain and heat. When Lee Jong-seong delivered the funding news shortly after 4 p.m. on the 16th, workers embraced each other and cried. One retired employee who left the company in September attended daily, stating the resolution allowed celebration alongside remaining staff. Workers exchanged consolations of "you worked hard" reflecting their shared experience maintaining the vigil.

Homeplus Plans Court Appeal and Store Reopening

Homeplus will file an immediate appeal with Seoul Rehabilitation Court on the 20th to continue rehabilitation procedures. The company closed 67 large retail stores for temporary suspension starting the 13th. Lee Jong-seong stated the 67 stores could welcome customers within two weeks if product supply resumes. The company emphasized plans to pursue structural innovation and sell remaining business units including headquarters, large retail stores, and online operations to complete the rehabilitation procedure successfully.

FAQ

How much emergency funding did Homeplus secure on the 16th? Homeplus secured 200 billion won in emergency operating funds from Meritz Financial Group, with Kim Byung-joo and MBK Partners providing full joint guarantees.

When will Homeplus file its court appeal? Homeplus will file an immediate appeal with Seoul Rehabilitation Court on the 20th to continue its rehabilitation procedure following the court's cancellation decision.

How long did the Homeplus union protest outside Meritz Securities? The Homeplus General Labor Union maintained a continuous vigil outside Meritz Securities headquarters in Yeouido for two weeks, starting from the 3rd until the funding announcement on the 16th.