Homeplus crisis exposes how South Korea’s retail rules distort capital flows

Homeplus crisis exposes how South Korea’s retail rules distort capital flows
January 9, 2026

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Homeplus crisis exposes how South Korea’s retail rules distort capital flows

Restrictions designed for brick-and-mortar commerce now amplify structural decline and investment asymmetry

South Korea’s extension of rigid retail regulations has constrained offline operators while accelerating the shift toward digital platforms, with the Homeplus crisis offering a clear illustration of these cumulative effects.

Homeplus, the country’s second-largest discount retail chain, on Friday reportedly moved to finalize an emergency $206 million (300 billion won) debtor-in-possession financing package to stabilize liquidity as it proceeds through corporate rehabilitation.

South Korea’s extension of rigid retail regulations has constrained offline operators while accelerating the shift toward digital platforms, with the Homeplus crisis offering a clear illustration of these cumulative effects.

Homeplus, the country’s second-largest discount retail chain, on Friday reportedly moved to finalize an emergency $206 million (300 billion won) debtor-in-possession financing package to stabilize liquidity as it proceeds through corporate rehabilitation.

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