Homeplus' Strategic Move Amidst Economic Uncertainty

In September 2015, MBK Partners acquired Homeplus for 7.2 trillion won (approximately $5.3 billion), injecting 2.2 trillion won through a blind fund and borrowing the remaining 5 trillion won under Homeplus's name. Since then, Homeplus has sold around 20 stores, repaying nearly 4 trillion won in debt, leaving about 400 billion won outstanding. Last month, Homeplus announced that it was considering the sale of its Super Supermarket (SSM) business segment, Homeplus Express.

On July 2, Homeplus released a statement explaining, "In the current economic environment, where uncertainty is high, most companies are actively restructuring their business models and strengthening their finances," adding, "Domestic retail companies are also facing unprecedentedly fierce competition and must prepare for a new future." The company emphasized that the consideration of selling Express is one of several strategic options to lay the foundation for sustainable growth beyond mere survival. Homeplus reiterated that if the sale proceeds, it will be carried out on the premise of ensuring job security for employees, a promise they have made publicly several times.

Homeplus further stated, "If the sale is successful, the proceeds will be entirely used to expand Mega Food Market, strengthen online delivery infrastructure and services, and improve our financial structure," stressing once again, "It is not for the purpose of recovering the major shareholder's investment."

However, the Homeplus branch of the Mart Industry Labor Union expressed strong opposition to the sale, stating, "MBK is tearing Homeplus apart for its own benefit." The union pointed out, "The sale of Express is the beginning of the process for MBK to recover its investment, and if profitable stores are sold first, the remaining stores could face closure."

Homeplus has firmly denied the union's claims that it is attempting to sell its SSM business segment 'Express' to recover investment funds for its major shareholder, MBK Partners. The company maintains that the sale is a strategic move aimed at ensuring long-term sustainability and growth in a highly competitive and uncertain economic environment.