Homeplus faces fresh funding needs on road to recovery

Homeplus continues to require further funding to manage its substantial debt obligations and facilitate its ongoing recovery following its return to normal operations last week. The company secured a 200 billion won ($143 million) emergency credit line to aid in this process, according to industry experts. Homeplus, which was on the verge of bankruptcy, has outlined a two-phase rehabilitation plan aimed at raising a combined 1.42 trillion won by 2028.

This includes selling 23 company-owned stores, although this alone will not suffice to meet the company's funding requirements during the rehabilitation period. A critical challenge lies in February 2030, when the firm will need to pay out 812 billion won in administrative claims, comprising 398 billion won in supplier payments and 100 billion won in unpaid rent.

To bridge this gap, Homeplus intends to secure an additional 592 billion won in loans secured by its remaining property assets. To ensure approval for these bank loans, the company must demonstrate substantial progress in its financial turnaround efforts. Current projections show that Homeplus will incur an operating loss of 10.3 billion won on revenue of 3.3 trillion won.