Home > Business > Industry

LG, Otoki, Lotte halt Homeplus deliveries as chain enters rehabilitation

Published: 06 Mar. 2025, 18:47 Updated: 07 Mar. 2025, 15:13

KIM JU-YEON
[email protected]

A passerby walks by a Homeplus store in Seoul on March 6. [YONHAP]

The manufacturers of Buldak Ramen and Pepero, as well as home appliance giant LG Electronics, stopped supplying Homeplus on Thursday, joining in a number of firms that have halted their business with the supermarket chain after it entered corporate rehabilitation on Tuesday.

Food and beverage firms including Otoki, Samyang Foods, Lotte Wellfood and Lotte Chilsung have temporarily stopped supplying Homeplus while companies like CJ CheilJedang are considering doing so, Yonhap reported. One firm told Yonhap that it had halted shipments because payments had not come through; others said they were negotiating payments with Homeplus in order to resume shipping.

LG Electronics said it had temporarily stopped deliveries to “prevent risks” but said it was discussing ways to resume sales at Korea’s second-largest supermarket chain to minimize inconvenience for customers. Some Homeplus branches will continue to sell LG Electronics’ goods that are in storage.

Samsung Electronics is also reportedly monitoring the situation and considering pulling its items from Homeplus’s shelves.

Homeplus entered corporate rehabilitation on Tuesday, which the chain said was a “pre-emptive” measure to resolve cash flow issues. During the process, Homeplus will sort out its liabilities under the guidance of the court.

Out of the 20 retailers at which Homeplus's vouchers can be used like cash, at least eight, including CJ Foodville, CGV, Shilla Duty Free and Everland, have stopped accepting them as payment following the supermarket's Tuesday announcement.

Homeplus characterized the firms' actions as “excessively sensitive,” and said the chain could “100 percent pay back” the vouchers, which they say are not impacted by the corporate rehabilitation process.

Around 40 billion to 50 billion won worth of gift certificates that have been issued have not yet been redeemed, according to Homeplus. They remain usable at Homeplus branches and are refundable.

“We plan to communicate with our partners to reduce any unnecessary concerns,” Homeplus said.

BY KIM JU-YEON [[email protected]]