Yoon Se-young: "Taeyoung Construction PF Contingent Liabilities of 2.5 Trillion Won... We Will Do Our Utmost to Revive It" (Comprehensive)

Yoon Se-young, the founding chairman of Taeyoung Group, stated on the 3rd regarding Taeyoung Construction's workout application, "Recent reports have indicated that the scale of real estate project financing (PF) is 9 trillion won, but the actual contingent liabilities causing problems are around 2.5 trillion won."

Employees are moving inside the Taeyoung Building in Yeongdeungpo-gu, Seoul. / Photo by Jinhyung Kang aymsdream@

On the same day, at a creditors' briefing held by the main creditor bank, Korea Development Bank, at its headquarters in Yeouido, Seoul, Chairman Yoon appealed through a statement, saying, "If we are given a chance to properly complete the project and repay the debt, all executives and employees will do their utmost to revive Taeyoung."

He emphasized, "Taeyoung Construction currently has an order backlog exceeding 12 trillion won, and it is expected to generate annual sales of over 3 trillion won for the next three years. The operating profit margin is also 4%, which is better than the average of top companies in the same industry."

He added, "In short, Taeyoung Construction is a company with potential," and "Taeyoung has achieved good results and proven its potential through PF projects over the past few years." Regarding the cause of the bankruptcy crisis, he said, "We were negligent in self-management. It was a mistake by the management, including myself."

Chairman Yoon expressed, "I am very afraid that this could cause irreparable damage to the national economy," and appealed, "Please help us so that we do not commit a great sin against our partner companies, investing institutions, creditors, the country, and the people."

It was reported that Chairman Yoon shed tears while reading the appeal.

According to the status report submitted by Taeyoung Group to the creditors on the day, Taeyoung Construction's guaranteed liabilities total 9.5044 trillion won, of which contingent liabilities amount to 2.5259 trillion won. This includes bridge guarantees of 1.2193 trillion won and guarantees with PF pre-sale rates below 75% totaling 1.3066 trillion won.

The group presented risk-free guarantees amounting to 6.9785 trillion won. Risk-free guarantees include social overhead capital (SOC) project guarantees (1.0304 trillion won), main PF guarantees with pre-sale rates above 75% (1.0769 trillion won), and guarantees for interim payments by buyers (1.3142 trillion won), which are considered relatively stable liabilities.

Previously, Taeyoung Construction, ranked 16th in construction capability, entered the workout process after failing to repay a 48 billion won PF loan maturing on the 28th of last month related to an office development project in Seongsu-dong, Seongdong-gu, Seoul. The creditors are demanding a stringent self-rescue plan as a prerequisite for the workout.

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