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Homeplus faces supply disruptions as companies suspend shipments amid liquidity crisis

Published: 07 Dec. 2025, 17:13

Homeplus Dongdaemun branch in eastern Seoul holds a farewell sale on Nov. 30, before shutting down. [YONHAP]

Major consumer goods companies are suspending shipments to Homeplus as the retailer’s cash flow continues to deteriorate.

According to industry sources, Samyang Foods stopped supplying its products — including the popular Buldak Ramen — to Homeplus at the end of last month. “We’ve stopped new shipments as unpaid receivables have been piling up,” a spokesperson for Samyang said.

Amorepacific has not supplied any products to Homeplus since August. Most of the brand’s items currently being sold in stores are leftover inventory from previous shipments. While some suppliers have not fully halted distribution, they are scaling back. LG Household & Health Care and Dongsuh Foods began reducing product volumes and the number of stores they deal with starting in late December.

Earlier this month, Homeplus asked certain suppliers to delay settlement payments. Industry officials expect more companies to reduce or suspend shipments. “Suppliers cannot keep delivering products if payments are delayed,” said one food company representative. “There are many companies facing the same dilemma.”

Signs of Homeplus’s deepening liquidity crisis are becoming increasingly visible. Along with delayed payments to suppliers, the company is also behind on tax obligations. By the end of December, its unpaid taxes — including local taxes — are expected to exceed 80 billion won ($54 million). Some stores have also failed to pay electricity bills, raising concerns that continued non-payment could lead to power being cut.

The bigger issue is that Homeplus has no clear way to raise new capital. MBK Partners, which owns the retailer, has reportedly ruled out any further funding.

Homeplus Gayang branch in western Seoul seen on Oct. 9 [NOH YU-RIM]

Restructuring is inevitable, according to industry insiders. Homeplus already plans to close five stores this year, including its location in Gayang-dong, Gangseo District, western Seoul. But if the liquidity crunch is not resolved, a broader wave of closures may follow. As of the end of August, the retailer operated 125 stores nationwide.

In March, Homeplus entered court-led rehabilitation proceedings and initially planned to shutter 15 locations after talks to reduce rents fell through. That plan was put on hold, but the possibility of closures still remains.

Politicians have pledged to address the situation ahead of next year’s general election, but progress has been slow. Democratic Party floor leader Kim Byung-kee said the party would push for Homeplus to be acquired by a professional retail management company, though no specific developments have been announced.

The Seoul Bankruptcy Court has set Dec. 29 as the deadline for Homeplus to submit its rehabilitation plan. However, insiders warn that if no potential buyers emerge, even drafting the plan could prove difficult — increasing the likelihood of liquidation.

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 KANG KI-HEON [[email protected]]