Daeyu Plus, Suspension of Home Appliance Business Operations

"Personnel Reallocation Following Rehabilitation Procedures"

Daeyu Plus, the intermediate holding company of Daeyu Winia Group, which is undergoing corporate rehabilitation procedures, announced on the 26th that it has ceased operations of its home appliance business division.

Daeyu Plus explained, "With the completion of the public auction process for the land and buildings of the Gwangju factory of the home appliance business division, the business site will be closed and operations will be suspended," adding, "We will appropriately reassign personnel according to the future rehabilitation plan." Daeyu Plus also stated, "A reduction in scale due to decreased sales is expected." The sales revenue of Daeyu Plus's home appliance division (Gwangju factory) last year was 61.1 billion KRW.

Previously, Daeyu Plus initiated rehabilitation procedures on the 8th of last month. Affiliates of Daeyu Winia Group have been undergoing court receivership procedures one after another due to worsening management conditions and large-scale wage arrears, and are pursuing business normalization through asset sales including golf courses. Among them, Winia, well known for its kimchi refrigerator Dimchae, announced that it will proceed with mergers and acquisitions (M&A) and has completed a contract with Samil Accounting Corporation as the lead manager for the sale, entering the M&A process with the approval of the rehabilitation court.

The sale promotion will be conducted in the form of a third-party allotment paid-in capital increase before the approval of the rehabilitation plan. A sale announcement will be made in early January next year, with letters of intent to purchase accepted by the end of the same month, and memorandums of understanding (MOU) and investment contracts planned to be signed between February and March.