"890 Billion KRW Deposit Completed to Taeyoung Construction"…Attention on Additional Self-Rescue Plan Announcement

Taeyoung Group has fully paid the sale proceeds of Taeyoung Industry, a condition for starting the workout of Taeyoung Construction, drawing attention to what additional self-rescue plans will include. Financial authorities and creditors are urging the owner family to contribute their personal funds.

A red light is on at the traffic signal in front of Taeyoung Construction headquarters in Yeouido, Seoul. / Photo by Jin-Hyung Kang aymsdream@

According to the financial sector on the 9th, Taeyoung Group supported Taeyoung Construction with the remaining 89 billion KRW of the sale proceeds of Taeyoung Industry around 11 a.m. that day. It is known that 30 billion KRW out of 51.6 billion KRW from the sale of shares owned by Yoon Jaeyeon, daughter of founder Yoon Seyoung, combined with company funds from TY Holdings, was raised to make the 89 billion KRW.

It was also reported that the 41.6 billion KRW worth of hybrid capital securities (perpetual bonds) issued by TY Holdings targeting Yoon Seokmin, chairman of Taeyoung Group, was utilized. Initially, Taeyoung side said Chairman Yoon would contribute 41.6 billion KRW from the sale of Taeyoung Industry shares to supply liquidity to Taeyoung Construction, but this was replaced by issuing hybrid capital securities by TY Holdings, leading to criticism that it was a 'personal loan' rather than a 'personal contribution.'

Financial authorities and creditors emphasized that Taeyoung Group has only implemented the existing self-rescue plan and that additional self-rescue plans are necessary to start the workout. Taeyoung side announced that it would execute four self-rescue plans: ▲supporting Taeyoung Construction with 154.9 billion KRW from the sale of Taeyoung Industry, ▲pursuing the sale of Ecobit and supporting with the proceeds, ▲providing Blueone shares as collateral and pursuing their sale, ▲and providing Pyeongtaek Silo shares as collateral.

Taeyoung Group is expected to announce additional self-rescue plans using TY Holdings shares on the same day. Although it is still uncertain whether the creditors will agree to start the workout, there are evaluations that the negotiation atmosphere has changed as Taeyoung side is implementing the self-rescue plans.

The government held a macroeconomic financial issue meeting chaired by Choi Sangmok, Deputy Prime Minister and Minister of Economy and Finance, on the morning of the same day, stating, "Taeyoung side needs to present concrete additional self-rescue plans to gain the trust of the creditors." The meeting was attended by Lee Changyong, Governor of the Bank of Korea, Kim Joo-hyun, Chairman of the Financial Services Commission, Lee Bokhyun, Governor of the Financial Supervisory Service, as well as Park Chunsup, Senior Secretary for Economic Affairs to the President, and Kang Seokhoon, Chairman of KDB Industrial Bank.

The creditors will hold the first creditors' meeting on the 11th and vote on entering the workout.

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