Survived on Construction Services, but 'Piano Master' IPARK Youngchang Ultimately Files for Rehabilitation

Deficit Structure Deepens Amid Global Instrument Market Slump
HDC Group: "No Impact on Group Financial Soundness"

'Piano Master' IPARK Youngchang has ultimately filed for corporate rehabilitation after prolonged financial difficulties.

According to HDC Group on April 17, its affiliate IPARK Youngchang announced that it had filed for commencement of rehabilitation proceedings with the Seoul Bankruptcy Court the previous day. This comes 20 years after it was acquired by HDC Group in 2006.

The decisive factor was management difficulties caused by the contraction of the global acoustic instrument market. The company attempted to respond to the rapidly changing market dynamics from acoustic to digital by utilizing its digital asset Kurzweil, but explained that it was unable to overcome sluggish performance due to the prolonged downturn in the global instrument market and a sharp decline in demand for acoustic instruments.

A notice announcing the filing for commencement of rehabilitation proceedings is posted on the IPARK Youngchang website. IPARK Youngchang website

The company’s performance has deteriorated every year. After turning to a net loss in 2020 due to the impact of the COVID-19 pandemic, operating losses continued. On a consolidated basis, operating losses expanded from 1.2 billion won in 2020 to 10.9 billion won in 2022, and recorded 5.1 billion won in 2025. During the same period, revenue dropped from 86.4 billion won to 31.1 billion won, a third of the previous amount.

Although the company’s main instrument business struggled, its subsidiary business in professional construction services had served as a support. In 2023, revenue from professional construction services grew 31.1% year-on-year to 24.4 billion won, significantly surpassing the struggling electronic instrument revenue of 20.4 billion won, partially offsetting the poor results. However, as the construction market slumped, revenue from professional construction services also fell to 10.2 billion won in 2025, casting a shadow over the entire business.

An official from IPARK Youngchang explained, "Despite our efforts in workforce and cost optimization, logistics cost reduction, and product line reorganization, it has become difficult to withstand the accumulated losses." The company added, "We apologize to creditors, partners, and customers for causing concern, and we will faithfully comply with the court’s rehabilitation proceedings to restore operations as soon as possible and minimize losses for stakeholders."

HDC Group issued a statement the previous day, saying, "We respect the management’s decision at IPARK Youngchang to minimize stakeholder losses and normalize the company through rehabilitation proceedings," and added, "As the largest shareholder, we will do our best to fulfill our legal responsibilities."

HDC Group stated that IPARK Youngchang’s entry into rehabilitation proceedings would not affect the group’s financial soundness. IPARK Youngchang accounts for just 0.4% of HDC Group’s revenue and 0.2% of its assets, and there are no cross-guarantees or borrowings from financial institutions. Instrument-related trade payables are around 4 billion won.

Founded in 1956 as Shinhyang Piano, the company changed its name to Youngchang Musical Instrument Manufacturing Co., Ltd. in 1962 and began exporting instruments under the Youngchang brand in 1971. In 1990, it expanded into the electronic instrument market by acquiring the American electronic instrument brand Kurzweil. After being acquired by HDC Group in 2006, the company diversified its revenue sources by entering the professional construction services business in 2016. It changed its name to HDC Youngchang in 2018 and again to IPARK Youngchang in 2026.

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