According to retail industry sources, leading food manufacturers, including Ottogi, Lotte Wellfood, and Samyang Foods, have gradually restarted their supply chains since March 7. However, companies such as Dongsuh Foods and Lotte Chilsung Beverage continue to withhold shipments, with negotiations still underway.
Homeplus, once one of South Korea’s top retail chains with 126 stores nationwide, filed for court-supervised rehabilitation on March 4, citing deteriorating credit ratings and mounting short-term financial burdens.
The retailer has sought to reassure employees and customers, emphasizing that store operations and salary payments would continue uninterrupted. It characterized the restructuring as a “preemptive measure” aimed at stabilizing the business.
For suppliers, Homeplus represents both a critical business partner and a potential financial risk. The retailer’s vast footprint makes it a significant buyer, but concerns over payment delays have made some companies wary of resuming shipments.
“Other major retailers settle accounts within two weeks, but Homeplus has an exceptionally long payment cycle,” said an executive at a food company that supplies Homeplus. “We can only feel secure if they shorten the settlement period or implement advance payments before we restart deliveries.”
Previously, Homeplus operated on a system where payments for goods delivered in January would be settled in February, with some suppliers waiting as long as 60 days for payment.
The retailer has now begun individual negotiations with suppliers, reportedly prioritizing talks with fresh food providers, including vegetable and dairy producers.
Despite its financial restructuring, Homeplus has asserted that all general commercial transaction debts will be paid in full.
The company cited available cash reserves of 309 billion won (about $213 million) as of March 6, along with an estimated monthly net cash inflow of approximately 300 billion won, as evidence of its ability to meet financial obligations.
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