Homeplus completes full payment of April and May salaries

A notice of business suspension is posted at the Homeplus Jamsil branch in Songpa-gu, Seoul. [Herald DB]
A notice of business suspension is posted at the Homeplus Jamsil branch in Songpa-gu, Seoul. [Herald DB]

Homeplus has paid all employees their full April and May wages after NS Shopping completed its acquisition payment for Homeplus Express.

Industry sources said Tuesday that Homeplus paid all staff that morning the outstanding portion of April wages and the full May salaries that had gone unpaid. Homeplus had previously paid only 25 percent of April wages and had failed to pay May salaries at all.

The wages appear to have been funded using the Homeplus Express sale proceeds deposited the previous day. NS Shopping said Monday that it had completed full payment of 120.6 billion won ($78.5 million) for the Homeplus Express business unit and closed the business transfer deal. A Homeplus official confirmed that all employees had received their wages but said the company could not confirm whether the April and May payments had been drawn directly from those sale proceeds.

Meanwhile, a dispute continues between MBK Partners, Homeplus's largest shareholder, and Meritz Financial Group, its primary creditor, over how to fund the retailer's rehabilitation. MBK Partners has asked Meritz, the largest creditor, to provide 200 billion won in financial support. Meritz has indicated it may offer 100 billion won in debtor-in-possession financing but has pushed back, arguing that the controlling shareholder must first commit its own funds and citing questions of management accountability. The deadline for court approval of Homeplus's rehabilitation plan is July 3.


korean@heraldcorp.com