Woongjin Energy, Overwhelmed by Chinese Solar Products, Ultimately Declares Bankruptcy

[Asia Economy Reporter Kim Daehyun] Woongjin Energy, which struggled against the onslaught of Chinese solar products and filed for corporate rehabilitation proceedings, ultimately went bankrupt. Woongjin Energy was the only company in Korea producing solar ingots and wafers.

According to the court on the 27th, the Seoul Rehabilitation Court Rehabilitation Division 2 (Presiding Judge Seo Kyunghwan, Chief Judges Kim Donggyu and Lee Jeongyeop) declared Woongjin Energy bankrupt the day before.

The bankruptcy trustee is attorney Kim Euichang. Creditors can file claims at the Seoul Rehabilitation Court General Civil Affairs Office by September 27. The creditors' meeting will be held on October 25 at 3:20 PM in Courtroom No. 1 of the Seoul Rehabilitation Court. The resolutions will include 'whether to continue business operations' and 'designation of storage location for high-value items.'

Woongjin Energy was established in 2006 as a joint venture between Woongjin Group and the U.S. solar panel company SunPower. It was a specialized company for ingots and wafers playing a central role in the domestic solar cell industry, but due to being outcompeted by Chinese solar products, it suffered management deterioration and received a 'disclaimer of opinion' from external auditors on its financial statements.

Woongjin Energy filed for corporate rehabilitation proceedings in 2020 and received approval, but on the 20th of last month, it judged that it was impossible to carry out the rehabilitation plan and applied for termination of the rehabilitation proceedings. Accordingly, the court decided to terminate the rehabilitation proceedings on the 8th.

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