 |
Photo = Homeplus |
[Alpha Biz= Paul Lee] Seoul, August 21, 2025 — Homeplus, currently under corporate restructuring, announced that failure to secure rent adjustments on key stores could result in an annual loss of approximately KRW 80 billion.
In a statement distributed to the media on August 21, the company explained that despite repeated requests, landlords of several stores have refused to negotiate rent reductions, forcing Homeplus to prepare for store closures as part of an “emergency survival management” plan.
On August 13, Homeplus revealed that it will gradually shut down 15 leased stores where rent negotiations have stalled. These include Siheung and Gayang in Seoul; Ilsan, Ansan Gojan, Suwon Woncheon, and Hwaseong Dongtan in Gyeonggi Province; Cheonan Sinbang in South Chungcheong; Munhwa in Daejeon; Jeonju Wansan in North Jeolla; Dongchon in Daegu; Jangnim and Gamman in Busan; and Buk-gu and Nam-gu in Ulsan.
Homeplus emphasized that many of these long-term lease contracts were signed 10 to 15 years ago during the peak of hypermarket growth, with rent levels based on then-high sales volumes. “Without a reasonable adjustment in rent, sustainable operations are impossible,” the company noted.
The retailer further stressed: “This emergency survival strategy is an unavoidable and urgent step. Without action, the restructuring process through a pre-arranged M&A may collapse, endangering the livelihoods of over 100,000 people.”
Homeplus confirmed that all employees at the affected stores will be guaranteed continued employment, with transfers arranged to nearby branches and additional employment stability support payments provided. The company also pledged to notify tenant shop owners of detailed closure schedules and work out compensation measures.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
