Why did Korea’s discount store retail sales index fall sharply in the second quarter of 2026?

Government data blamed the drop partly on Homeplus, whose store closures and suspensions reduced activity across its discount store network. The company was in corporate rehabilitation and had been struggling with operating capital and store maintenance.

What happened after the Seoul Bankruptcy Court tried to end Homeplus’ rehabilitation proceedings?

The court first terminated the proceedings in early July, but later canceled that decision after Meritz Financial Group agreed to provide the financing needed for the company. Homeplus then reopened its stores.

Retail sales index marks record drop in Q2 amid Homeplus fiasco

Q: How many Homeplus stores were closed or suspended during the rehabilitation process?

Homeplus had closed 37 of its 104 offline outlets by June. It also temporarily suspended operations at its remaining 67 stores on July 13 before reopening them after the court reversed its earlier termination decision.

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Summary

Homeplus’ retail sales index at discount stores posted a record year-on-year drop in the second quarter, government data showed Sunday. The decline was partly blamed on store closures and suspensions during the company’s corporate rehabilitation process. Homeplus had closed 37 of 104 offline outlets by June, then briefly suspended operations at its remaining 67 stores on July 13 before reopening them after fresh financing was arranged.

Key Facts

The retail sales index for Korea’s discount store chains was 77.8 points in the April-June period, down 9.4 percent from a year earlier.
The Ministry of Data and Statistics said the decline was the steepest since it began compiling the statistics in 2010.
Homeplus had closed 37 of its 104 offline outlets by June because of a lack of operating capital and difficulties maintaining store operations.
The Seoul Bankruptcy Court terminated Homeplus’ rehabilitation proceedings in early July, then later canceled that decision after Meritz Financial Group agreed to provide necessary financing.

By Yonhap

Published Aug 9, 2026 2:28 pm KST

Shoppers purchase groceries at a Homeplus store in Seoul, Friday. Yonhap

The retail sales index at Korea's discount stores posted the sharpest year-on-year fall in the second quarter, partly due to the closure or operation suspension of stores at Homeplus, which is going through a corporate rehabilitation process, government data showed Sunday.

The retail sales index at Korea's discount store chains was 77.8 points in the April-June period, down 9.4 percent from the same three months in 2025, according to the data from the Ministry of Data and Statistics.

The index fell by the steepest level since the ministry started compiling such statistics in 2010, it said.

Massive closures of Homeplus stores were blamed for the decline, the ministry said. The discount store chain had closed 37 out of 104 offline outlets as of June due to the lack of operating capital and difficulties in maintaining store operations.

In early July, the Seoul Bankruptcy Court terminated rehabilitation proceedings for the troubled discount retailer.

Homeplus had temporarily suspended operations at its remaining 67 stores on July 13. But the company reopened them after the bankruptcy court canceled the earlier decision to end the company's rehabilitation proceedings, as its largest creditor, Meritz Financial Group, agreed to provide necessary financing.

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