What support will the Korean government give Homeplus workers after the rehabilitation case was terminated?

The finance ministry said employees may receive up to 21 million won to cover unpaid wages. They can also get low-interest loans of up to 10 million won at 1.5 percent within the amount of their unpaid salaries.

Why did the Seoul Bankruptcy Court end Homeplus rehabilitation proceedings?

The court said Homeplus failed to secure at least 200 billion won needed to carry out its rehabilitation plan. The company had also not explained how it would obtain the necessary funds.

What aid is being offered to businesses that rely on Homeplus as a partner?

The government said it will provide around 440 billion won in liquidity support for small merchants and businesses that rely on Homeplus. It also said businesses choosing to close can get up to 6 million won for closure costs and legal consultations.

Gov't to support Homeplus workers, partners amid botched rehabilitation

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Summary

Korea will support Homeplus workers and partner companies after a Seoul court terminated the retailer’s rehabilitation proceedings on Friday. The finance ministry said the government will offer up to 21 million won in unpaid-wage compensation for employees and low-interest loans of up to 10 million won at 1.5 percent. It also plans around 440 billion won in liquidity support for merchants and businesses tied to Homeplus. Weekly task force meetings will review worker and partner damage and the impact of store closures.

Key Facts

The Seoul Bankruptcy Court terminated Homeplus rehabilitation proceedings after the company failed to explain how it would secure at least 200 billion won needed for its plan.
Homeplus had earlier pledged to reorganize its business but did not specify how it would raise the required funds.
The government said employees can receive up to 21 million won to compensate for unpaid wages, plus loans of up to 10 million won at 1.5 percent.
Around 440 billion won in liquidity support will be provided for small merchants and businesses that depend on Homeplus as a major partner.
Businesses that want to shut down can receive up to 6 million won for closure costs and legal consultations.

By Yonhap

Published Jul 3, 2026 2:09 pm KST

Korean supermarket chain Homeplus in Seoul / Yonhap

Korea will make efforts to support employees and partner companies of troubled discount store chain Homeplus after a local court decided to terminate its rehabilitation proceedings, the finance ministry said Friday.

The meeting, chaired by the Ministry of Finance and Economy, came after the Seoul Bankruptcy Court decided to terminate rehabilitation proceedings for Homeplus in a move that could pave the way for the company's dissolution.

The company earlier pledged to reorganize its business but did not specify how it would secure the necessary funds of at least 200 billion won ($130 million).

During the meeting, the government unveiled financial support measures for employees of Homeplus, including up to 21 million won to compensate for unpaid wages.

Korea will also offer low-interest loans of up to 10 million won at a rate of 1.5 percent within the amount of their unpaid salaries.

The government will additionally provide around 440 billion won worth of liquidity support for small merchants and businesses that rely on Homeplus as a major business partner.

Businesses wishing to shut down can also receive up to 6 million won in support for closure costs, along with legal consultations.

"The government will hold weekly task force meetings (on the Homeplus issue) to closely review damage caused to workers and partner companies, along with progress in supporting them," the finance ministry said in a release.

"We will also examine the potential impact on regional economies following store closures in the provinces and come up with measures to fundamentally bolster the country's retail industry," it added.

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