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A light flickers at the end of the Homeplus tunnel with one bidder confirmed

Published: 31 Oct. 2025, 19:58 Updated: 31 Oct. 2025, 20:27

Victims of Homeplus commercial paper losses and representatives of the Homeplus Store Owners Council hold a press conference in front of the National Assembly in Yeouido, western Seoul, on Oct. 14, urging lawmakers to address the retailer’s restructuring in the National Policy Committee’s audit. [YONHAP]

Homeplus has drawn at least one bidder in its open sale process, offering a potential lifeline for the troubled retailer as it navigates court receivership and mounting political pressure over its future.

The announcement comes as the company solicited letters of intent (LOI) over the past month as part of efforts to find a new owner. On Friday, Homeplus said that it had received an LOI by the final deadline, but declined to disclose the name of the bidder, citing the ongoing nature of the sale.

While some lawmakers had previously floated the idea of Nonghyup acquiring Homeplus in a public interest move, the notion has faced persistent doubts over its feasibility. Owned by the National Agricultural Cooperative Federation, Nonghyup has generated substantial business by selling produce to Homeplus, leading some to argue that an acquisition is only natural.

The open bid was launched by Samil PwC, Homeplus’ merger and acquisition manager, on Oct. 2 after earlier efforts to secure a preferred bidder stalled.

According to the open bidding schedule, any company that submitted an LOI will conduct due diligence between Nov. 3 and 21 and must submit a final bid by Nov. 26.

“With an LOI submitted, the deadline for the restructuring plan, currently set for Nov. 10, may be extended again,” a Homeplus representative said. “We will do our utmost to ensure the open bidding process ends successfully.”

Kim Kwang-il, vice chairman of MBK Partners, apologizes over the Homeplus situation during a parliamentary audit by the National Assembly’s Climate, Energy, Environment and Labor Committee on Oct. 30. [YONHAP]

The idea of Nonghyup stepping in as a buyer had drawn political attention. During an Oct. 24 parliamentary audit, Rep. Eoh Kiy-ku of the Democratic Party (DP) urged Nonghyup Chairman Kang Ho-dong to consider the acquisition in the interest of the greater public, warning that a Homeplus liquidation could put 20,000 employees and 300,000 partners out of work.

“Although the idea has been raised multiple times, it has never been formally reviewed within Nonghyup,” Kang said. “I don’t think it’s appropriate to discuss Homeplus as a potential acquisition."

Nonghyup’s retail arms — Nonghyup Hanaro Distribution and Korea Agricultural Cooperative Marketing — have already faced their own hardships, he said, explaining that they have "already posted hundreds of billions of won in losses and had to lay off more than 200 employees."

“We understand the situation with Homeplus, but we also have limited capacity.”

Still, talk of Nonghyup as a potential acquirer persisted. At another audit on Thursday by the National Assembly’s Climate, Energy, Environment and Labor Committee, Rep. Yoon Sang-hyun of the People Power Party asked Homeplus CEO and MBK Partners Vice Chairman Kim Kwang-il whether discussions were ongoing. Yoon cited another audit where lawmakers suggested potential synergies between Nonghyup and Homeplus.

“I cannot comment on the position of any particular buyer,” Kim said, though he added, “There would certainly be synergy if Nonghyup acquired Homeplus.”

However, when DP Rep. Park Hee-seong pressed him on whether negotiations were underway, Kim admitted, “We are making efforts to sell, but it hasn’t been easy.”

A Homeplus supermarket in Seoul on Oct. 31 [NEWS1]

Analysts say a Nonghyup acquisition could bolster its urban retail network and online business. Currently, 67 percent of Homeplus hypermarkets and 91 percent of its supermarkets are located in the Seoul metropolitan area or other major cities, which would help offset Nonghyup Hanaro Mart’s distribution weaknesses in urban regions.

Online business would also get a boost — Homeplus reported over 1.5 trillion won ($1.1 billion) in online sales in the fiscal year from March 2024 to February 2025, accounting for about 20 percent of its total revenue.

But any acquisition would come at a cost. Hanaro Distribution and Korea Agricultural Cooperative Marketing have posted continued losses. Korea Agricultural Cooperative Marketing recorded an operating loss of 21.8 billion won last year and 28.3 billion won in 2023.

Nonghyup Hanaro Distribution logged a 40.4 billion won loss in 2024, up from 31.9 billion won the previous year. Adding Homeplus’ workforce and the cost of turning the company around could weigh heavily on NonghHyup’s finances.

Meanwhile, domestic AI company Harex InfoTech also confirmed it submitted an LOI to acquire Homeplus. CEO Park Kyung-yang told the JoongAng Ilbo that the company aims to boost Homeplus’ competitiveness by introducing a direct transaction model powered by AI agents — similar to platforms run by Walmart and Amazon in the United States.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NOH YU-RIM [[email protected]]