Lee Bok-hyun "Taeyoung must submit self-rescue plan by weekend... Workout decision not to exceed 11th"

"Taeyoung Self-Rescue Plan, Like Cutting Someone Else's Bone"
"If Not SBS Sale, TY Holdings Can Be Utilized"

Lee Bok-hyun, Governor of the Financial Supervisory Service, said on the 4th regarding Taeyoung Construction's workout (corporate improvement process), "If time passes around this weekend (6th-7th), the Industrial Bank of Korea, the main creditor bank, will have insufficient time to persuade the creditor group," adding, "The deadline is the 11th (when the Financial Creditors' Council meeting is held), and an acceptable plan must be presented and negotiated before then."

Lee Bok-hyun, Governor of the Financial Supervisory Service, is holding a press conference on the 4th at the Financial Supervisory Service in Yeouido, Seoul. Photo by Kang Jin-hyung aymsdream@

Governor Lee held a New Year's greeting meeting with the press corps at the headquarters in Yeouido, Yeongdeungpo-gu, Seoul, that morning and stated, "If anyone expects (the government and authorities) to drag the issue beyond the 11th, they are mistaken. (The decision on whether to start Taeyoung Construction's workout) will be concluded by the 11th no matter what."

He first strongly criticized the self-rescue plan announced by the Taeyoung Group side at the creditor meeting the previous day. He said, "The basic requirement and foremost promise to 'minimize losses for partner companies, creditors, and pre-sale buyers,' mentioned by Yoon Se-young, the founding chairman of Taeyoung Group, have not been kept. Instead, the plan is being used to protect TY Holdings, which is the core of the founder family's assets," and pointed out, "The creditor group is suspicious that this is not a Taeyoung Construction self-rescue plan but an 'owner family self-rescue plan.'"

Previously, Taeyoung Group negotiated four self-rescue plans with the Industrial Bank of Korea: support for Taeyoung Construction using proceeds from the sale of Taeyoung Industry, sale of Ecobit, provision and sale of Blue One shares as collateral, and provision of collateral for 62.5% of Pyeongtaek Silo shares. However, only a portion (40 billion KRW) of the Taeyoung Industry sale proceeds was supported for Taeyoung Construction, and Blue One shares were also used to repay the debts of the parent company TY Holdings, causing controversy over non-implementation of the self-rescue plan.

Regarding Taeyoung Group's non-repayment of accounts receivable-backed loans (external receivables loans) of Taeyoung Construction, which are subject to the workout, he said, "It is true that the external receivables loan is a financial claim, but now the intention is not to liquidate the business but to continue it. If the external receivables loan is damaged, financing will be impossible," adding, "It is difficult to build basic trust without settling the external receivables loan."

Governor Lee also emphasized, "As the saying goes, 'privatization of profits and socialization of losses,' during the real estate boom, Taeyoung Group earned over 1 trillion KRW through development and construction, but when the downturn came, the creditor group, partner companies, and pre-sale buyers had to bear the losses," and stressed, "The creditor group suspects that this is not a self-rescue plan that involves 'cutting one's own flesh,' but one that 'cuts others' flesh,' using only company funds while the major shareholder family separately parks funds held under personal names."

Regarding the self-rescue plan that Taeyoung Group must present, Governor Lee mentioned the holding company TY Holdings. He said, "Whether as an excuse or justification, if selling SBS is difficult due to the Broadcasting Act, TY Holdings is a listed company, so its valuation is easy, and since the major shareholder family holds shares, there should be ways to utilize this," adding, "It is difficult for the authorities to comment on the scattered positions among various parties, but I hope they engage in sincere dialogue on this matter."

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