Seoul Bankruptcy Court Terminates Home Plus Restructuring on July 6, Emart and Lotte Shopping to Benefit

According to Shinhan Investment & Securities analyst Sang-hoon Jo, Seoul Bankruptcy Court terminated Home Plus' corporate restructuring procedure on July 6, citing insufficient feasibility of the retailer's revised recovery plan. The court cited failure to secure 200 billion won in operating funds, collapsed financing negotiations with creditor Meritz Financial, and low probability of operational recovery.

With Home Plus now facing liquidation, analysts expect market share redistribution among South Korea's major discount retailers. Jo estimated that if 30% of Home Plus' 4.8 trillion won annual sales (excluding 1 trillion won from Home Plus Express, sold in April) shift to competitors, Emart and Lotte Shopping combined could see 1.4-1.5 trillion won in additional revenue, alongside improved profit margins through enhanced bargaining power with suppliers.