Seoul Rehabilitation Court Decides to Commence Rehabilitation Proceedings for Winia Electronics

Winia Electronics will undergo rehabilitation proceedings (court receivership).

The Seoul Rehabilitation Court, Rehabilitation Division 1 (Presiding Judges An Byung-wook, Lee Dong-sik, Na Sang-hoon) announced on the 19th that it has decided to commence rehabilitation proceedings against Winia Electronics. Seo Woon-seok, Executive Director of Winia Electronics, was appointed as the legal administrator (representative of the debtor).

The court will accept the submission of lists of rehabilitation creditors, rehabilitation secured creditors, and shareholders from today until the 2nd of next month, and will receive reports of rehabilitation claims, rehabilitation secured claims, and shares from the 3rd to the 16th of next month. Subsequently, after investigating rehabilitation claims and rehabilitation secured claims, the court will receive rehabilitation plans by January 11 of next year and review whether to approve them.

Winia Electronics was acquired by Daeyu Winia Group in 2018 after the collapse of the Daewoo Group during the 1997 International Monetary Fund (IMF) foreign exchange crisis. The business situation worsened as its factory in China shut down due to the COVID-19 pandemic.

The operating loss, which was 4.5 billion KRW in 2019, increased to 17.5 billion KRW in 2021, and last year, the company did not disclose its financial statements due to a qualified audit opinion. Park Hyun-chul, CEO of Winia Electronics, was arrested by prosecutors in September on charges of withholding hundreds of millions of KRW in wages and retirement benefits.

This content was produced with the assistance of AI translation services.