Taeyoung Yoon Jaeyeon Loans 33 Billion Won to Holding Company... SBS Shares Pledged as Collateral

Resolution and Disclosure by the Board on the 8th
Leisure Affiliate Blueone Also Loans 10 Billion Won

[Image source=Yonhap News]

Yoon Jae-yeon, the youngest daughter of Yoon Se-young, founder of Taeyoung Group, lent 33 billion KRW to TY Holdings using shares of the broadcasting affiliate SBS as collateral. This move is seen as a determination to protect SBS amid government and creditor pressure, with the start of a workout (corporate restructuring) for Taeyoung Construction becoming uncertain.

TY Holdings, the holding company of Taeyoung Construction, held a board meeting on the 8th and announced that it borrowed 33 billion KRW from Ms. Yoon, providing 1,172,000 shares of SBS stock held by the company as collateral. The loan maturity is six months from the date, until July 8, with an annual interest rate of 4.6%.

The collateral limit for the SBS shares provided by TY Holdings is 40.3 billion KRW. The 1,172,000 shares represent 17.4% of the SBS shares held by the company (6.74 million shares, 36.3%) and 6.3% of the total issued shares with voting rights (18.55 million shares).

On the same day, TY Holdings also borrowed 10 billion KRW from Blue One, a leisure affiliate operating golf courses. The loan is scheduled to be repaid by January 7, 2025, with an interest rate of 4.60% per annum. Similarly, the company stated that "the decision to borrow funds was made to secure stability in fund management."

Taeyoung Group is currently under pressure from creditors to implement self-rescue measures and present additional plans. The existing self-rescue plans proposed to the creditors include: support for Taeyoung Construction using proceeds from the sale of Taeyoung Industry, providing collateral and sale of Blue One, sale of Ecobit, and providing collateral for Pyeongtaek Silo.

On the morning of the same day, TY Holdings reportedly supported 89 billion KRW by combining 30 billion KRW from Ms. Yoon’s share sale proceeds (51.6 billion KRW out of the 154.9 billion KRW from the sale of Taeyoung Industry) and company funds. However, creditors expect the owner side to present additional credible self-rescue plans, such as personal fund contributions or external financing through the sale of SBS or TY Holdings shares.

The creditors will hold the first creditors' meeting on the 11th to vote on entering the workout. If the workout fails, there is a possibility of moving toward court receivership.