Kim Juhyun "Insufficient Trust Building Between Taeyoung and Creditors... Time Is Running Out"

"Major Shareholder Sincerity, the Basis for Workout Start"
Regarding Lotte Construction Crisis Rumors, "Different Nature from Taeyoung and Construction Companies"

The On-Site Meeting for Supporting Low-Income Financial Services, hosted by the Financial Services Commission and the Korea Inclusive Finance Agency, was held on the 5th at the Seoul Press Center. Financial Services Commission Chairman Kim Ju-hyun is entering the conference room. Photo by Heo Young-han younghan@

Kim Joo-hyun, Chairman of the Financial Services Commission, emphasized that Taeyoung Group should promptly present a reliable plan and that it is now the stage for the parties involved to come together and negotiate.

On the 5th, after the 'Financial Support for Low-Income People On-Site Meeting' held at the Seoul Jung-gu Community Finance Integrated Support Center, Chairman Kim told reporters, "It seems that trust has not been established between Taeyoung Group and the creditors," adding, "Although a push-and-pull process is inevitable, it is now time for both parties to come together and negotiate."

He reiterated that the major shareholder's sincere willingness to take self-help measures must be a prerequisite. He said, "The basis of a workout requires a confirmation process that the major shareholder is making sincere efforts," and added, "The creditors hope that a self-help plan deemed worth attempting a workout will be presented. There is not much time until the first financial creditors' meeting on the 11th."

Taeyoung Group stated that the entire 154.9 billion KRW from the sale of Taeyoung Industry was used for Taeyoung Construction, but the creditors countered that since 89 billion KRW of the repayment amount was for TY Holdings' joint guarantee debt, it cannot be recognized as a self-help plan solely for Taeyoung Construction.

He also emphasized that for the success of the workout, the government's policies, macroeconomics, and the construction company's self-help efforts must be harmonized. Chairman Kim explained, "If even one of the three falters, uncertainty may increase."

Regarding market expectations that the fallout from the real estate project financing (PF) insolvency has spread from Taeyoung Construction to Lotte Construction, he drew a line, saying, "That will not happen." He dismissed the concern by stating, "Lotte Construction has secured liquidity since last year in preparation for such a situation," and "The nature of Taeyoung Construction and Lotte Construction is also different."

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