The government and banks will provide up to 500 million won in emergency working capital per company to suppliers facing financial difficulties following the termination of Homeplus's rehabilitation proceedings. The move, which adds new funding on top of existing loan maturity extensions and repayment deferrals, aims to prevent a chain liquidity crisis among suppliers.
The Ministry of Economy and Finance said it held a meeting of the Homeplus interagency task force on the 10th at the Government Complex Sejong, chaired by First Vice Minister Lee Hyoung-il, to review the damage to workers and small and medium-sized suppliers and the implementation status of support measures. The Ministry of Employment and Labor, the Ministry of SMEs and Startups, the Ministry of Trade, Industry and Energy, the Ministry of Planning and Budget, the Financial Services Commission and the Financial Supervisory Service attended the meeting.
KB Kookmin, Shinhan, Hana, Woori and NongHyup banks, along with the Korea Development Bank and the Industrial Bank of Korea, agreed to continue loan maturity extensions and principal repayment deferrals for Homeplus suppliers. Companies in need of new funding will be provided with emergency working capital loans of up to 500 million won at preferential interest rates. This is a follow-up measure arising from a financial sector meeting held on the 6th.
While financial support had previously focused on delaying the maturity of existing loans, this time the scope has expanded to supplying new funds that suppliers can use for deliveries and wage payments. Repayment deferrals and maturity extensions implemented by the financial sector since the start of the rehabilitation proceedings total 7,588 cases worth 5.1 trillion won. However, this represents adjustments to repayment schedules on existing loans rather than new loan amounts.
Policy financing support will also be strengthened. The Small Enterprise and Market Service will apply preferential interest rates on emergency management stabilization funds to Homeplus suppliers and raise the support limit per company. The related revised notice was issued on the 10th, and applications will be accepted starting on the 15th. Since the start of the rehabilitation proceedings, emergency management stabilization fund support related to Homeplus totals 175 cases worth 6.3 billion won.
The Korea Credit Guarantee Fund newly included small and medium-sized enterprises that suffered direct or indirect damage from the termination of Homeplus's rehabilitation proceedings among eligible recipients of its crisis-response special guarantee. The measure aims to help suppliers that lack sufficient collateral and thus have difficulty obtaining bank loans to raise funds through guarantees.
Suppliers' management difficulties are also coming to the surface. A total of 45 consultations were received at the Small Enterprise and Market Service's one-stop consultation window from the 3rd to the 8th of this month. The government plans to further assess damage such as uncollected supply payments and declining sales, and to supplement support measures if necessary.
Support for worker damage is also being carried out in parallel. A full survey by the Ministry of Employment and Labor confirmed that Homeplus's unpaid wages for June amounted to 33.3 billion won. From the 3rd to the 9th of this month, 692 consultations were received at the ministry's consultation window. The government plans to also examine whether there are additional unpaid wages.
Workers affected by unpaid wages can receive up to 21 million won per person in substitute payments for unpaid wages. Workers in need of emergency living expenses will be lent up to 10 million won within the range of the unpaid amount at an annual interest rate of 1.5%. Since the start of the rehabilitation proceedings, living expense loan support totals 8,758 cases worth 39.7 billion won.
The government said it will continue to monitor the damage to Homeplus workers and suppliers and prepare additional support measures if the damage expands.
