Homeplus, one of South Korea’s largest big-box retailers, has agreed to sell its supermarket subsidiary Homeplus Express to NS Shopping, an affiliate of Harim Group, for 120.6 billion won ($87 million) in a major step toward restructuring the debt-laden retailer under court supervision.
The transaction marks one of the most significant asset disposals yet for Homeplus, which has spent more than a year in corporate rehabilitation proceedings as it struggles to adapt to shifting consumer habits, mounting financial pressure and the rapid rise of e-commerce.
Once considered one of South Korea’s dominant retail chains alongside E-Mart and Lotte Mart, Homeplus built its business on an extensive nationwide network of hypermarkets and neighborhood supermarkets. But like many traditional brick-and-mortar retailers globally, the company has faced intensifying challenges as online commerce and changing shopping patterns eroded traffic at large-format stores.
Under the deal, Homeplus will receive 120.6 billion won in cash while NS Shopping will also assume and repay part of Homeplus Express’s existing debt, though specific debt obligations were not disclosed.
According to company data, Homeplus Express holds approximately 317 billion won in total assets and around 146 billion won in net assets.
Homeplus described the sale as a meaningful milestone in its restructuring process, though executives acknowledged that proceeds from the transaction—expected in roughly two months—will not fully resolve the company’s near-term liquidity challenges.
The retailer remains in need of additional operational funding as it works to stabilize its finances and execute a broader court-approved recovery strategy.
Homeplus entered court receivership in March last year and has since pursued an extensive turnaround plan aimed at preserving operations while reducing debt burdens.
In December, the company submitted a restructuring proposal that included 300 billion won in debtor-in-possession financing and the divestiture of its supermarket business. The court approval deadline for that plan has been extended twice and is currently set for July 3.
Industry analysts say the sale of Homeplus Express underscores the broader structural pressures facing South Korea’s traditional retail sector, where legacy hypermarket operators are increasingly forced to shed assets, streamline operations and reinvent business models to survive in a digital-first consumer economy.
For Homeplus, the divestiture could prove a critical inflection point.
Whether the company can successfully complete its rehabilitation may depend on how effectively it leverages the transaction to secure liquidity, rebuild creditor confidence and reposition itself in an increasingly competitive retail landscape.
The deal also reflects a larger transformation underway in South Korea’s retail industry, where traditional store-based giants are being reshaped by technology, delivery platforms and evolving consumer expectations.
