South Korea's retail transformation crisis deepened as Homeplus suspended operations at 37 of its 104 stores, leaving hundreds of small business tenants facing potential ruin without compensation—a stark illustration of power imbalances between corporate platforms and small merchants in the country's chaebol-dominated economy.
The major supermarket chain, currently under corporate rehabilitation, implemented emergency closures on Sunday affecting more than one-third of its locations through at least July 3. While Homeplus management claimed tenant businesses could "continue operations normally," the reality on the ground tells a different story.
"We opened here because of the supermarket traffic," one restaurant owner operating inside an affected branch told the Korea Herald. "If this shutdown continues, it will be difficult to survive."
Small merchants report learning about the closures through news reports rather than direct company notification, leaving them no time to prepare contingency plans or negotiate terms. Shoppers encountering closure notices assume entire shopping complexes have shut down, eliminating the foot traffic that in-store businesses—including restaurants, pharmacies, bakeries, and cafes—depend on for survival.
"We didn't even have time to prepare," another merchant noted, describing the devastating impact of abrupt closures on businesses that invested capital in locations specifically chosen for Homeplus customer traffic.
The company justified the suspensions by citing ongoing sales declines and reduced vendor deliveries as part of its rehabilitation process. Homeplus reported receiving approximately $81 million from selling its Homeplus Express division, with additional funds expected within two months—yet no compensation framework has been announced for affected tenants bearing the costs of platform failure.
An association representing in-store merchants criticized the absence of compensation measures, arguing that businesses operating under valid lease agreements should not bear the full financial burden of Homeplus's restructuring decisions. The critique reflects broader debates about and the treatment of small businesses dependent on large platform operators.
