Homeplus General Labor Union has requested that Meritz Financial Group promptly execute 200 billion won (approximately $150 million) in emergency operating funds (DIP). The union expressed concerns that delays in funding could disrupt product supply and the timeline for resuming operations.
In a statement on July 30, the union said, "Homeplus is currently finalizing preparations for a swift business resumption," and urged for the rapid disbursement of funds to achieve management normalization and successful business reopening.
Previously, Meritz Financial Group, Homeplus's largest creditor, confirmed on July 16 that it would provide 200 billion won in emergency operating funds, guaranteed in full by Kim Byung-joo, chairman of MBK Partners.
The union believes that the timing of the funding will be crucial for Homeplus's recovery, referring to it as a 'golden time.' They emphasized that if the 200 billion won is quickly provided, it will facilitate payments for goods and ensure a smooth supply of fresh products, thereby restoring the cash-generating capacity of the stores. They added that it would also help stabilize the livelihoods of store owners, partner companies, and local small businesses.
Currently, Homeplus has begun preliminary work for resuming operations. The headquarters purchasing team is negotiating with suppliers of fresh and processed foods to restart product supply. It is also reportedly preparing to activate logistics centers and secure delivery drivers.
The incoming DIP funds are expected to be prioritized for normalizing the product supply chain. Additionally, they plan to use the funds to settle unpaid severance payments to former employees and outstanding wages for current staff.
Meanwhile, the company has indicated that it aims to resume operations within seven days of receiving the DIP funds.
* This article has been translated by AI.
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