Government: "Taeyoung Group Must Present Additional Self-Rescue Plan"

"Adhering to the Policy of Principle-Based Restructuring"
"Operation of Daily Inspection System for Related Agencies"

The government has demanded that Taeyoung Group, which applied for a workout for Taeyoung Construction, promptly implement its four self-help plans and present additional self-help measures.

On the 8th, Choi Sang-mok, Deputy Prime Minister and Minister of Economy and Finance, held a macroeconomic and financial issues meeting at the Export-Import Bank with Lee Chang-yong, Governor of the Bank of Korea; Kim Ju-hyun, Chairman of the Financial Services Commission; Lee Bok-hyun, Governor of the Financial Supervisory Service; Park Chun-seop, Senior Secretary for Economic Affairs; and Kang Seok-hoon, Chairman of KDB Industrial Bank, to discuss the recent progress following Taeyoung Construction's workout application.

Choi Sang-mok, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, presiding over the Macroeconomic and Financial Issues Meeting. From the left, Park Chun-seop, Senior Secretary for Economic Affairs; Lee Chang-yong, Governor of the Bank of Korea; Choi Sang-mok, Deputy Prime Minister; Kim Ju-hyun, Chairman of the Financial Services Commission; Lee Bok-hyun, Governor of the Financial Supervisory Service; Kang Seok-hoon, President of the Korea Development Bank.
[Photo by Ministry of Economy and Finance]

At the meeting, the participants agreed on the need to consistently uphold the basic policy of 'pursuing restructuring based on principles.'

They particularly emphasized the necessity for Taeyoung to promptly implement the four self-help efforts already proposed and to gain the creditors' trust by presenting sufficient and concrete additional self-help plans. This pointed out that the self-help measures presented by Taeyoung were not only insufficient but also not properly implemented. Previously, Taeyoung proposed self-help efforts including ▲payment of 154.9 billion KRW from the sale of Taeyoung Industry to Taeyoung Construction ▲sale of Ecobit and support of the sale proceeds to Taeyoung Construction ▲providing Blueone shares as collateral and pursuing their sale ▲providing collateral for Pyeongtaek Silo.

The creditors requested that if Taeyoung's willingness for effective self-help efforts is confirmed, the workout procedure for Taeyoung Construction be carried out normally.

The participants stated that considering various uncertainties, they are keeping all possibilities open and are fully prepared to stabilize the financial market, support the construction industry, and minimize the impact on buyers and partner companies.

Currently operating at about 85 trillion KRW, market stabilization measures will be promptly expanded to an adequate level if necessary, and necessary measures will be swiftly implemented according to the situation. Additionally, to quickly resolve difficulties faced by buyers and partner companies and closely manage the construction status and financing situation of each project site, a daily inspection system involving related agencies will also be activated.

Meanwhile, the Industrial Bank explained that there has been some progress, such as Taeyoung's commitment to implement the four self-help plans submitted at the time of the workout application, and the creditors will continue to negotiate based on this.

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