Will Taeyoung 2nd Generation Yoon Seok-min and Yoon Jae-yeon Release 92.9 Billion Won from Share Sale Proceeds?

Lee Bok-hyun "Owner family not included in liquid asset self-rescue plan"
Pressure on Yoon Seok-min and Yoon Jae-yeon for personal fund contribution... Deadline by weekend

Tae Young Industry Share Sale Proceeds

Financial Supervisory Service (FSS) Governor Lee Bok-hyun's emphasis that "loss sharing by major shareholders is the principle of restructuring" directed at Taeyoung Group is interpreted as a pressure on Chairman Yoon Seok-min and his sister to make personal financial contributions. By this weekend, the new self-rescue plan requires not only Chairman Yoon but also his sister Yoon Jae-yeon, CEO of Blueone, to deposit the proceeds from the sale of their Taeyoung Industry shares into Taeyoung Construction.

According to the FSS electronic disclosure system on the 4th, TY Holdings, the holding company of Taeyoung Group, announced that it sold 1,581,542 shares of Taeyoung Industry for 96 billion KRW on December 27 last year. On the same day, Chairman Yoon Seok-min also sold 1,278,819 shares (32.34%) for 77.62463 billion KRW. Yoon’s sister, Yoon Jae-yeon, CEO of Blueone, sold 1,093,494 shares (27.66%) for 66.37536 billion KRW.

The sale of Taeyoung Industry shares is part of efforts to save Taeyoung Construction. Taeyoung Group submitted a self-rescue plan to creditors including four measures: △supporting Taeyoung Construction with 154.9 billion KRW from the proceeds of Taeyoung Industry share sales △providing Blueone shares as collateral and pursuing their sale △supporting Taeyoung Construction after selling Ecobit △providing 62.5% of Pyeongtaek Silo shares as collateral for payment.

The creditors demanded that Taeyoung Group deposit the proceeds from the Taeyoung Industry share sales into Taeyoung Construction by noon (12 PM) the previous day, but Taeyoung Group refused and used the funds to resolve TY Holdings’ joint debt. This means the first implementation item of the self-rescue plan was broken. As a result, doubts about Taeyoung Group’s willingness to normalize Taeyoung Construction have spread significantly within the creditor group.

Within the creditor group, criticism arose that the willingness of major shareholders to share losses was weak despite the self-rescue plan. A creditor official said, "During the workout of Kumho Group and Doosan Group, the owners pledged shares they held in the company and affiliates as collateral for normalization," adding, "Taeyoung Group stated that Yoon Jae-yeon, CEO of Blueone, could not use her Taeyoung Industry shares to support Taeyoung Construction, which did not feel sincere."

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’s remark at the New Year’s meeting with reporters on the 4th that "the owner family has hundreds of billions to thousands of billions of won in cash and liquid assets from subsidiary sales, yet not a single won was included in the workout plan" is interpreted in this context. Lee said, "Even if it is not SBS, the major shareholder holds shares in TY Holdings, and I heard that the creditors are demanding plans utilizing these shares."

In other words, all members of the owner family must show their commitment to normalizing Taeyoung Construction. The post-tax proceeds from the sale of Taeyoung Industry shares for Chairman Yoon and CEO Yoon are 41.6 billion KRW and 51.3 billion KRW, respectively. For TY Holdings, the post-tax proceeds including other payments amount to 113.3 billion KRW. Since Governor Lee stated, "The main creditor bank also has to persuade other creditors, so if this weekend passes, the Industrial Bank will effectively lack time to persuade," it appears that the Yoon siblings must make a decision by this weekend.

A creditor official emphasized, "Looking at the proceeds from the sale of Taeyoung Industry shares included in the self-rescue plan, the holding company’s sale proceeds can be seen as a self-rescue effort, and Chairman Yoon’s sale proceeds are a personal financial contribution," adding, "The principle of restructuring is loss sharing by major shareholders and stakeholders."

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