Now In Korea
Retail Turmoil in South Korea: Homeplus Sale Stalls, Coupang Breach, Industry Strains
Creatrip Team
3 months ago
South Korea’s retail and food sectors faced a turbulent 2025 marked by failed deals, data breaches, and reputational crises. Homeplus, once the country’s No.2 hypermarket chain, remains under corporate rehabilitation after filing for court protection; its private equity owner MBK Partners has not taken decisive action, and the company is pursuing separate sales of assets like Homeplus Express (a chain of small-format supermarkets) to raise emergency funds. E-commerce giant Coupang suffered a massive data breach affecting about 33.7 million users, exposing weaknesses in internal controls. Public anger grew as executives, including chairman Kim Beom-seok, were criticized for avoiding accountability, and the company’s compensation—platform-only vouchers—was seen as a marketing tactic rather than genuine relief. Major food groups SPC and The Born Korea (더본코리아) faced safety and quality controversies: SPC endured repeated workplace deaths undermining trust, and The Born’s brands were hit by product-quality and ingredient-origin disputes tied to owner-related (백종원) reputational risks. Government consumer stimulus via large-scale “consumer coupons” (민생회복 소비쿠폰) briefly boosted spending and consumer confidence, but effects were short-lived and many small businesses reported little lasting benefit. Meanwhile, K-fashion expanded across Asia, raising Korea’s style profile, even as domestic demand weakness spurred secondhand sales, imitation “dupe” products, and restructuring in fashion firms struggling with falling profits.
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