A Homeplus store in Seoul (Yoon Chang-bin/The Korea Herald)
A Homeplus store in Seoul (Yoon Chang-bin/The Korea Herald)

The Seoul Bankruptcy Court on Wednesday approved Homeplus's corporate rehabilitation plan, letting the hypermarket sidestep bankruptcy and setting it on course to exit court receivership.

Secured creditors, unsecured creditors and shareholders voted in separate classes at the same-day meeting, with approval requiring more than 75 percent, 66.7 percent and 50 percent support, respectively.

"We declare the rehabilitation plan approved, with 100 percent approval among secured creditors, 75.90 percent among unsecured creditors and 100 percent among shareholders," the court said. "Given that more than two-thirds of creditors approved the plan, we find it meets the requirements for court approval."

The court plans to formally close the rehabilitation proceedings once repayments under the plan are fully carried out. If Homeplus fails to make repayments as outlined, the court could issue a ruling revoking its authorization, at which point it could declare bankruptcy on its own authority.

With court approval secured, Homeplus plans to sell 19 of its 37 stores slated for closure to repay secured trust debt, while pursuing further fundraising, restructuring, and potential mergers and acquisitions to complete its turnaround.

The approval caps a turbulent 18-month process.

Homeplus filed for court receivership in March 2025 after a credit downgrade triggered a funding crunch. The court moved to terminate proceedings in July when Homeplus failed to secure 200 billion won ($146 million) in required funds, but reversed course after the company quickly raised the money, extending the voting deadline to Sept. 4.

Homeplus reopened Aug. 13 and posted 116.4 billion won ($86 million) in sales through Sunday.

"With a solid customer base, we expect a full recovery once normal supply resumes," a Homeplus official said.


minmin@heraldcorp.com