A Homeplus store in Seoul sits shuttered. The company said it suspended operations because its working capital had been fully depleted, leaving it unable to cover product payments or basic operating costs such as utilities. [Herald DB]
A Homeplus store in Seoul sits shuttered. The company said it suspended operations because its working capital had been fully depleted, leaving it unable to cover product payments or basic operating costs such as utilities. [Herald DB]

After Homeplus suspended operations at all its stores, secondhand trading platforms moved in unison to ban transactions involving Homeplus gift cards, leaving consumers to bear the brunt of the fallout. Complaints have been mounting across online communities and on social media.

According to industry sources Wednesday, Karrot designated Homeplus gift cards as prohibited items starting Monday, when Homeplus began its temporary closure. Listings to sell, buy or exchange the cards were also removed. The cards are redeemable only at Homeplus stores and on its website, making them unusable now that all locations have shut down. Karrot said it banned the cards "to prevent harm to users."

Two other platforms acted even earlier. Junggo Nara and Bungaejangter both halted Homeplus gift card sales after a court ruled to terminate the company's rehabilitation proceedings. Junggo Nara banned new listings starting July 3, the day the court issued that ruling. Bungaejangter had restricted related transactions since March last year.

Homeplus announced Monday that it was temporarily suspending hypermarket operations due to exhausted working capital and an inability to cover store maintenance costs. No official guidelines on gift card refunds have been issued.

The cards have in effect become worthless. Online, consumers have voiced frustration: "I have 500,000 won ($332) left on gift cards and have nowhere to use them besides Homeplus — I have no idea what to do," one user wrote, while another said, "I kept putting off using my gift cards and suddenly every store has closed." Some users criticized the company for failing to give advance notice of the closures so cardholders could spend down their balances.

Hwang Dong-hyeok, an attorney at law firm League, said that once Homeplus stops operating and gift cards can no longer be used, they convert to bankruptcy claims. "Once bankruptcy proceedings begin, it becomes legally impossible for consumers to demand a refund from Homeplus or recover money through litigation," he said.

He added that anyone hoping to recoup even a portion of their money must file the necessary documents directly with the court within the period the court designates — a process known as a bond claim filing — and that cardholders would likely not recover the full face value of their gift cards, since payouts are capped by the company's remaining assets.

Members of the Mart Industry Labor Union, affiliated with the Korean Confederation of Trade Unions (KCTU) Service Workers' Federation, post protest notices on the windows of Homeplus headquarters in Gangseo-gu, Seoul, on Tuesday, after a press conference denouncing MBK Partners' unilateral cancellation of a scheduled meeting and announcing the union's position. [Yonhap]
Members of the Mart Industry Labor Union, affiliated with the Korean Confederation of Trade Unions (KCTU) Service Workers' Federation, post protest notices on the windows of Homeplus headquarters in Gangseo-gu, Seoul, on Tuesday, after a press conference denouncing MBK Partners' unilateral cancellation of a scheduled meeting and announcing the union's position. [Yonhap]

korean@heraldcorp.com