Taeyoung "All proceeds from Industry sale to support Taeyoung Construction... 48.4 billion KRW personal contribution"

by Roh Kyungjo

Published 04 Jan.2024 16:39(KST)

Taeyoung Group announced on the 4th that "the entire 154.9 billion KRW from the sale of Taeyoung Industry was supported to Taeyoung Construction as promised."

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

TY Holdings, the holding company of Taeyoung Group, stated in a press release on the same day, "As part of the group-level self-rescue plan promised to the Korea Development Bank when applying for Taeyoung Construction's workout, the remaining 25.9 billion KRW from the sale of its subsidiary Taeyoung Industry was supported to Taeyoung Construction as of yesterday."

According to TY Holdings, out of the total sale proceeds of 154.9 billion KRW, 40 billion KRW was used immediately after the workout application to pay construction fees to Taeyoung Construction's partner companies. Following Taeyoung Construction's workout application, 89 billion KRW was invested in repaying retail bonds among the joint liabilities claimed from TY Holdings. The remaining 25.9 billion KRW was also supported for operating funds at Taeyoung Construction's construction sites as of the previous day, TY Holdings explained.

Regarding the repayment of retail bonds among the joint liabilities, TY Holdings emphasized, "TY Holdings directly repaid on behalf of Taeyoung Construction, which had to immediately repay debts due to the workout application, to protect individual investors," and added, "The entire sale proceeds were used for Taeyoung Construction as per the self-rescue plan."

Additionally, out of the 154.9 billion KRW, the amount from the sale of TY Holdings' shares (after deducting capital gains tax) was 113.3 billion KRW, and 41.6 billion KRW came from the sale of shares owned by Yoon Seok-min, Chairman of Taeyoung Group. In other words, the 41.6 billion KRW corresponds to a 'personal contribution' from the owner family. Separately, 3 billion KRW was also invested in purchasing bonds of Taeyoung Construction's subsidiaries.

TY Holdings stated, "Furthermore, Yoon Se-young, the founding chairman and father of Chairman Yoon, also invested 3.8 billion KRW in purchasing bonds of Taeyoung Construction and its subsidiaries, making the total personal contribution from the owner family 48.4 billion KRW," and added, "Additional contributions are also being considered."

They continued, "We will also fulfill the remaining self-rescue plans as promised, excluding Industry, to be used for the normalization of Taeyoung Construction. However, if joint guarantee debts of Taeyoung Construction other than retail bonds are claimed for payment to TY Holdings, there is a possibility that some of the funds may be used to repay these to avoid disruption in the workout process."

Previously, the self-rescue plan submitted by TY Holdings to the main creditor bank, Korea Development Bank, included four items in total, such as support through the sale or collateral provision of Ecobit, Blue One, and Pyeongtaek Silo, in addition to the sale proceeds from Taeyoung Industry.