Kang Seok-hoon: "Taeyoung Changed the Self-Rescue Plan... Must Fulfill Promise and Make Additional Efforts"

Kang Seok-hoon, Chairman of the Korea Development Bank (KDB), stated on the 3rd regarding the workout of Taeyoung Construction, "It is very regrettable as the main creditor bank that Taeyoung Group is not fulfilling the self-rescue plan originally promised (to KDB)," and added, "We once again request that they fully implement the self-rescue plan with a responsible attitude and sincerity, and additionally make substantial self-rescue efforts."

On the same day, Chairman Kang held a press conference immediately after the creditor briefing session for Taeyoung Construction at the Yeouido headquarters in Yeongdeungpo-gu, Seoul, and said, "The fundamental premise of the workout is sufficient self-rescue efforts by the major shareholder. If Taeyoung Group does not show a responsible attitude and sincerity, there are concerns about whether the creditors' smooth cooperation and market trust can be secured."

Kang Seok-hoon, Chairman of the Korea Development Bank, is speaking at an emergency press conference regarding current issues at Daewoo Shipbuilding, held on the 26th at the Korea Development Bank headquarters in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

Chairman Kang first pointed out that Taeyoung Group did not implement the four self-rescue plans previously agreed upon. The four self-rescue plans are ▲supporting Taeyoung Construction with the sale proceeds of Taeyoung Industry (154.9 billion KRW) ▲sale of Ecobit ▲providing and selling Blueone shares as collateral ▲providing collateral for 62.5% of Pyeongtaek Silo shares.

Kang said, "The workout was proceeding on the condition of these four premises, but Taeyoung Group only supported Taeyoung Construction with 40 billion KRW out of the sale proceeds of Taeyoung Industry, and changed their stance on Blueone shares, saying they would use them to repay the debt of the holding company TY Holdings." He emphasized, "We requested a firm commitment to implement the four self-rescue plans and asked them to announce this at today's creditor briefing, but Taeyoung Group only conveyed that they would try hard and asked for support."

Regarding future plans, he said, "From the creditors' standpoint, it will be difficult to obtain the 75% consent of creditors required to start the workout without a concrete self-rescue plan," and added, "We plan to repeatedly request Taeyoung Group to make a new promise to faithfully keep their existing commitments."

In response to the appeal from Taeyoung Group and Chairman Yoon Se-young that Taeyoung Construction’s contingent liabilities are at the level of 2.5 trillion KRW, Kang said, "KDB judges that Taeyoung Construction has direct debt of 1.3 trillion KRW, performance guarantee liabilities of 5.5 trillion KRW, and joint guarantee liabilities of 9.5 trillion KRW," and urged, "TY Holdings and the major shareholders should make sufficient efforts to save Taeyoung Construction."

Regarding additional self-rescue plans such as private fund contributions, he refrained from commenting, emphasizing that the implementation of existing self-rescue plans is a priority. He said, "I believe the parties involved (Taeyoung Group) know best about the self-rescue plan," and added, "(Private fund contributions) may be considered if funds are needed during the workout process."

Chairman Kang said, "It seems very difficult to expect 75% of the creditors to agree to the workout of Taeyoung Construction with the current situation and proposal," and stated, "If Taeyoung sincerely and earnestly submits a self-rescue plan, KDB will actively persuade the creditors and strive to minimize losses to the creditors and the impact on the national economy."

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