Homeplus faces power cuts at six stores over unpaid electricity bills; raising concerns over harm to tenants

[Financial News] Homeplus has been unable to pay electricity bills for its closed stores on time, putting in-store tenants at risk of having to suspend operations. Korea Electric Power Corporation (KEPCO) has issued warnings of power cuts at six stores this month.
According to the retail industry on the 26th, some closed Homeplus stores have received warnings from KEPCO of possible disconnection this month because of unpaid electricity bills. Disconnection warnings are scheduled for the 27th at Pocheon Songu, the 28th at KINTEX, Goyang Terminal and Namyangju Jinjeop, the 29th at Paju Unjeong, and the 30th at Gajwa. Incheon Songdo is also among the stores slated for a power cut next month.
Homeplus is struggling to secure liquidity, paying its monthly employee salaries—in the 20-billion-won range—in installments. As a result, it is expected to have difficulty paying its overdue electricity bills by the deadline.
The Homeplus supermarkets at these locations have closed, but some in-store tenants, including hair salons, remain and continue to operate. If the power is actually cut, these businesses will also have to suspend operations. Once power supply is cut, the entire building cannot operate under fire safety regulations. The scope of the damage could also expand if more stores fall behind on their electricity bills.
However, power will not be cut immediately on the announced dates. Under KEPCO's terms of electricity supply, a disconnection warning is issued if bills go unpaid for two months, and power supply may be suspended if they remain overdue for three months or more.
KEPCO plans to hold a plenary meeting later to discuss whether to carry out the power cuts and when. It also plans to hear the views of the in-store tenants as part of the process.
A Homeplus representative said, "Until now, even when we closed a supermarket, we have managed the stores so that in-store tenants could continue operating. But if we become unable to pay the electricity bills, safety concerns could make it impossible for the tenants to operate."
[email protected] Kim Hyun-ji Reporter