Homeplus, the third-largest discount store in Korea, which is pursuing mergers and acquisitions (M&A) before the approval of its rehabilitation plan, has initiated the sale process. Three scenarios are being considered: a complete sale, partitioning, and asset liquidation. The value of real estate assets, excessive liability structure, and the emergence of potential acquirers are becoming key variables that will determine the success or failure of the sale.
According to investment banking and distribution industries on the 3rd, Homeplus plans to complete the sale within three months, starting with the signing of a conditional acquisition contract in July, followed by the main bidding and selection of the highest scorer in August and September, and the final decision on the acquirer by the end of September. The submission of the rehabilitation plan is scheduled for October, and a creditors' meeting will take place in November, alongside legal procedures. The sale will be conducted in a 'stalking horse' manner, determining the final acquirer after narrowing down strong candidates through competitive bidding. Samil PwC has been entrusted with managing the sale.
◇ 'Liquidation value > going concern value'... whether the sale price materializes is key
According to data submitted to the court, Homeplus's liquidation value is estimated at approximately 3.68 trillion won, while its going concern value is about 2.51 trillion won. Theoretically, liquidation is favorable, but Homeplus is prioritizing M&A considering the impact on employment, the local economy, and supply chains. Legal experts note that under the Debtor Rehabilitation Act, acquisition conditions should correspond to the liquidation value.
The actual sale price is likely to be formed in the range of 1 to 2 trillion won based on the equity structure, the creditors' agreement, and the acquirer's burden conditions. Homeplus operates 126 large discount stores, 308 Express stores (SSM), and 6 logistics centers across the country. Of these, 58 stores are owned by the company. The book value of tangible assets is approximately 4.8 trillion won, of which land assets amount to 3 trillion won. While the appeal of real estate asset liquidity is high, fixed cost burdens and management issues of aging stores are concerns for potential acquirers.
◇ All scenarios of complete sale, partitioning, and liquidation are possible
Homeplus's total debt is estimated at approximately 5.5 trillion won, of which about 3.4 trillion won is leasing liability (store rental fees), while the remaining loans from financial institutions amount to around 2 trillion won. Additionally, redeemable convertible preferred shares (RCPS) worth 1.15 trillion won are also assessed as practical liabilities. There are views that the need to re-lease a significant number of stores after the sale limits financial improvement effects. As of 2024, Homeplus recorded an operating loss of 314.1 billion won. With four consecutive years of losses and capital erosion, the outlook for a performance rebound to attract bidders appears bleak.
The sales method is compressed into ▲ overall store acquisition (complete sale) ▲ separate sale of assets and business divisions (partitioning) ▲ disposal of real estate assets followed by corporate dissolution (liquidation). A complete sale involves acquiring the entire business, including 126 large discount stores and 308 Express stores. This structure requires substantial financial capacity and restructuring abilities. Partitioning involves separating and selling primarily Express stores or owned stores. This structure was also considered during 2023.
If a suitable acquirer does not emerge, a liquidation scenario involving the sale of real estate and dissolution of the corporation is also being discussed. However, this scenario raises concerns about massive layoffs. As of the end of June 2025, Homeplus has approximately 19,280 directly employed individuals. When including indirect employees such as those from partner companies, the scope of layoffs becomes significantly larger.
◇ Coupang, GS, Emart, and Ali are mentioned as potential acquirers
The market mentions various potential acquirers ranging from strategic investors (SIs) such as Emart, NongHyup, GS Retail, Coupang, and AliExpress to Chinese capital and some domestic and foreign private equity funds (FIs). Analysts note that Coupang or Ali might show interest as they could utilize nationwide store networks as logistical hubs.
However, the burden of corporate merger reviews by the Fair Trade Commission, distribution regulations such as market definition, and the slowdown of the offline market are expected to be variables affecting actual participation. There are also observations that the entry of private equity funds may be cautious due to the decline in performance and controversy over investment losses following the leveraged buyout by Homeplus's major shareholder, MBK Partners.
Meritz Financial, which holds the largest equity stake among creditors (approximately 1.2 trillion won), is directly participating in the selection of acquirers and reviewing conditions. It is reported that they hold priority return rights on real estate collateral, allowing them to pursue recovery strategies in case of liquidation. Industry insiders have noted that 'if the sale price exceeds 2 trillion won, it may be possible for Meritz to recover without losses.'
According to the schedule for rehabilitation procedures, Homeplus must obtain court approval for its rehabilitation plan by March 4 of next year. Thus, the remaining time for the sale is approximately 8 months. If an acquirer is not determined within that period, ending the rehabilitation procedures and transitioning to liquidation procedures will be unavoidable.
A source in the distribution industry stated, 'The sale of Homeplus is a structure intertwined with asset, liability, labor union, and political issues,' adding, 'All scenarios of complete sale, partitioning, and liquidation are possible. How the interests of potential acquirers intersect with those of creditors and the court will be key.'