Six Homeplus stores have received power cutoff notices from Korea Electric Power Corp. after failing to pay their electricity bills.
Homeplus outlets in Pocheon Songwoo, Kintex, Goyang Terminal, Namyangju Jinjeop, Paju Unjeong and Gajwa received notices for cutoffs between the 27th and 30th of this month, industry sources said on the 26th. The Songdo branch in Incheon is scheduled for a cutoff in November.
Under its supply terms, KEPCO issues a cutoff notice when electricity bills go unpaid for two months. Power can actually be shut off if the arrears run three months or longer. The utility may, however, defer the cutoff rather than halt supply immediately.
If the cutoffs go ahead, tenants operating inside the stores are expected to take a hit. About 10 businesses per store, including a hair salon at the Goyang Terminal branch, are still hoping to stay open. Should KEPCO cut off power over the unpaid bills, Homeplus would have to shut down the entire building and suspend operations under fire safety law.
The retailer's operating funds have deteriorated to the point where it has had to pay part of its employees' wages in installments, making it unlikely it can settle the overdue bills. "If KEPCO carries out the cutoff, we cannot operate," a Homeplus official said.