Homeplus Dropped From Shinhan Bank Employee Loan Program as Restructuring Drags On

Homeplus, which is undergoing corporate restructuring, has been removed from Shinhan Bank’s list of companies eligible for its “Elite Loan,” a credit-loan product for employees of top-rated firms, industry sources said. The prolonged process is now affecting workers’ personal banking, beyond store operations and dealings with suppliers.

According to the retail industry on the 3rd, Homeplus was recently dropped from the Elite Loan program. The product offers preferential loan limits and rates to employees at selected companies. As a result, Homeplus workers were told they may have difficulty extending existing loans under the same terms when their loans mature, the sources said.

A Shinhan Bank official said employees were informed that extensions under the product would be difficult at maturity. The official added that being removed from the list does not mean the bank will demand immediate repayment or push borrowers to refinance right away. The bank can extend loans for up to three years, the official said, after which it guides customers to general credit-loan products.

In the financial sector, the company’s drawn-out restructuring and delayed wage payments are seen as factors behind the change. Homeplus has delayed wage payments since December last year, and employees have not received last month’s pay. Although its controlling shareholder, MBK Partners, injected 100 billion won in emergency debtor-in-possession financing, most of it was used to cover unpaid wages and outstanding payments. One Homeplus employee said health insurance premiums have been unpaid since last year, making it hard even to get a loan, and repeated wage delays have fueled internal concerns that timely pay will remain difficult.

The union, however, said securing funds to restore normal operations should come first, even if it means giving up wages. The Homeplus General Union said wages should be forgone to ensure the money is used entirely to normalize operations and supply goods, adding that all available resources — including workers’ wages, proceeds from the Homeplus Express sale and DIP funds — should be focused on restoring operations.

Separately, the Seoul Bankruptcy Court extended the deadline to approve Homeplus’ rehabilitation plan by two months, from the 4th of this month to July 3. The court cited the pending main contract for the sale of Homeplus Express, the company’s supermarket business unit, to NS Shopping under Harim Group. An industry official said proceeds from the Express sale and whether additional operating funds can be secured will be key variables in the restructuring.