Homeplus has secured 200 billion won ($140 million) in emergency financing and plans to reopen 67 stores that have been suspended, but the effort is already running into trouble as key tenants including CJ Olive Young and Daiso pull out — leaving loyal customers with fewer options.
According to retail industry sources Thursday, CJ Olive Young notified customers through its website last month that it would close its stores inside Homeplus locations in Osan, Incheon Cheongna, Dong-Gwangju and Gumi following the permanent closure of those Homeplus branches. The CJ Olive Young outlets shut between July 27 and July 31.
Homeplus plans a soft opening Friday for 67 stores — including the Osan, Incheon Cheongna and Dong-Gwangju locations — followed by a full reopening Aug. 13. The company secured 200 billion won through a debtor-in-possession loan the court approved Wednesday, and intends to use the funds to finalize agreements with suppliers and delivery partners before resuming operations. Homeplus has said it aims to run the stores with a focus on fresh produce and private-label products, modeled on the US chain Trader Joe's.
The outlook after reopening remains uncertain. If operations do not stabilize or a buyer is not found before the rehabilitation plan approval deadline of Sept. 4, the company could face another risk of having its rehabilitation proceedings dismissed. The maximum window for approval is 18 months from the start of proceedings, which began March 4, 2025 — making this effectively the last chance.
Industry insiders say tenant departures are inevitable, as a turnaround within a month is unlikely. CJ Olive Young has already left the Gangdong branch, which is among those preparing to reopen, and Modern House and Daiso are expected to follow soon. Uniqlo, which operates inside the Sangbong branch, is set to close its store this month. At the Bucheon Sosa branch, where closure has been confirmed, Daiso — one of the anchor tenants — ended operations in late July.
As everyday retail staples such as CJ Olive Young and Daiso exit one after another amid the uncertainty, local residents are growing increasingly frustrated. Posts on neighborhood online communities, including parenting forums, have expressed dismay that familiar stores are disappearing from their areas.
Among Homeplus's major tenants, Modern House currently operates 22 in-store locations, Topten 20, Daiso 10 and CJ Olive Young 8, based on figures from each company's website. Food and beverage tenants are even more numerous — Lotteria has 46 outlets inside Homeplus stores, and Baskin-Robbins 38.
"Homeplus has moved to normalize operations, but the situation may not improve significantly within a month," one industry official said. "More tenants will likely move to close their stores as their lease agreements expire."
spa@heraldcorp.com
