"With a responsible attitude, we will repay all debts and ensure that no one is harmed by the corporate rehabilitation process."

Jo Juyeon, CEO of Homeplus, stated at a press conference held at the Homeplus headquarters in Gangseo-gu, Seoul on the 14th, "I sincerely apologize to all those experiencing inconvenience due to this rehabilitation process, including our partners, tenants, and creditors."

Present at the press conference were nine executives including Co-CEO Kim Kwangil, who also serves as Vice Chairman of MBK Partners, the private equity fund (PEF) that is the major shareholder of Homeplus, and CEO Jo. This was the first official statement made ten days after the Seoul Bankruptcy Court commenced Homeplus's rehabilitation proceedings on the 4th.

Speaking on behalf of the company regarding the progress and future plans following the commencement of rehabilitation, CEO Jo emphasized that business operations, cash inflow, and debt repayment are proceeding smoothly in order to address market concerns about liquidity issues.

President Cho stated, "Thanks to the court's prompt decision to initiate the rehabilitation process, normalization is currently progressing rapidly." He explained, "As of the previous day, 340 billion KRW of trade receivables have been repaid, and most of the small business creditors, excluding large corporations and brand franchisees, are expected to be paid soon." President Cho also asserted, "As of the previous day, the cash on hand is approximately 160 billion KRW, and cash inflows occur daily through operations." He emphasized, "Considering this, there is no problem with paying the remaining trade receivables." He further stressed, "Trade receivables owed to partner companies and leased franchisees are being paid sequentially," and added, "Although it may take some time, all payments will be completed."

According to Homeplus, sales for the week following the commencement of rehabilitation increased by 13.4% compared to the same period last year, which was the company's best performance to date, and customer traffic grew by 5%. As of the previous day, the transaction retention rates for hypermarkets, supermarkets, and online were maintained at around 95%, while malls were at 99.9%, logistics at 100%, and contractors at 100%, all at levels similar to those before the rehabilitation process began.

The company explained that trade payables classified as pre-rehabilitation claims as of the 4th, before the proceedings began, are being paid in installments, and payments for sales generated after the commencement are being made as usual. However, Homeplus requested the understanding and support of stakeholders for the company's swift normalization through continued business activities. CEO Jo stated, "In reality, it is difficult to pay all debts at once, so we are prioritizing the debts of small business owners and micro-enterprises and paying them sequentially. If large corporate partners can make a small concession, we will definitely repay all debts according to the installment repayment schedule."

Homeplus plans to submit its rehabilitation plan to the court by June 3, after conducting creditor verification, asset and corporate value assessments, and stakeholder briefings. Vice Chairman Kim stated, "The commencement of rehabilitation proceedings prioritizes repayment to stakeholders," and drew a clear line by adding, "There are currently no plans for restructuring or the sale of Homeplus Express."

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Meanwhile, in response to Homeplus management's announcement of a full debt repayment plan, victimized investors criticized it as "a shameless tactic to only put out the immediate fire and move on."

The Emergency Committee for Victims of Homeplus ABSTB Purchases (the Committee) held a press conference in front of the Homeplus headquarters in Deungchon-dong, Gangseo-gu, Seoul, stating, "It is unclear which debts MBK Partners is referring to when they say they will repay them." They emphasized, "There must be clear disclosure regarding the repayment of asset-backed short-term bonds (ABSTB) and the repayment schedule."

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At the press conference, Homeplus CEO Jo Juyeon and MBK Partners Vice Chairman Kim Kwangil, the major shareholder of Homeplus, stated, "With a responsible attitude, we will repay all debts so that no one is harmed by this rehabilitation process." They expressed their intention to sequentially repay trade payables such as payments to suppliers and settlement amounts to tenant store owners.

In response, the Committee criticized, "Homeplus should have made efforts to repay debts through emergency management before filing for rehabilitation, but showed no such effort. Are they even qualified to talk about full debt repayment and responsibility?"

The Committee also emphasized that the issuance of ABSTB by Homeplus was a "fraudulent act" carried out with prior knowledge of a credit rating downgrade.

The emergency committee stated, "Evidence is emerging that Homeplus knew the fact that the credit rating of the commercial paper would decline even before the 25th of last month when the credit rating actually dropped." They added, "Nevertheless, they allowed the issuance of the commercial paper and conspired to have 82 billion won of issuance funds raised through credit card companies." They further pointed out, "MBK Partners, the major shareholder owning 68% of Lotte Card, did not take any measures such as halting sales through credit card companies, etc. Without prior collusion, such absurd acts that disrupt commercial order would not have occurred."

The Committee claims that Homeplus allowed over-the-counter purchases of ABSTB until as late as the 28th of last month, resulting in continued damage to investors.

The victims once again demanded that ABSTB be recognized as trade payables. If ABSTB is classified as trade payables for goods payments, repayment is possible, but if it is classified as financial debt, the chances of recovery are low. The Committee stated, "The government and the Financial Supervisory Service must recognize the money taken from ABSTB victims by Homeplus as trade payables and ensure they are given repayment priority," adding, "Homeplus and MBK Partners Chairman Kim Byungju must immediately return the full amount of damages to all ABSTB victims, even if it means using their personal assets."

The Committee's press conference was held urgently in response to the news of the Homeplus press conference. About 20 victimized investors attended. One victim in his 40s (from Yangcheon-gu, Seoul) said, "The securities company told me to trust only Homeplus and MBK Partners without mentioning any risks, so I invested over 1 billion KRW, but I never imagined I would lose the entire principal," adding, "MBK Partners must also take some responsibility for the suffering of victims. At the very least, please compensate the principal."