The management normalization efforts of Taeyoung Construction, which is undergoing a workout (corporate restructuring), have gained momentum. Following the sale of valuable assets to secure liquidity, trading of its shares on the stock market has also resumed. Taeyoung Construction announced that it will actively pursue business normalization through proactive order acquisition activities going forward.
Trading of Taeyoung Construction shares resumed on the 31st. This comes seven months after trading was suspended due to capital erosion. On the first day of trading, the stock price surged. As of 9:40 a.m., Taeyoung Construction shares were trading at 5,810 KRW, up 23.62% compared to the previous trading day. The buying frenzy is analyzed to be driven by growing expectations that the pace of corporate normalization will accelerate.
With the workout process, which began in January this year, progressing smoothly, trading of Taeyoung Construction shares has resumed. After signing a memorandum of understanding (MOU) with the Korea Development Bank for a corporate improvement plan, the Taeyoung Group began asset sales. In particular, in August, they completed a major deal by selling all shares of the waste disposal company Ecobit for 2.07 trillion KRW. Through this, they significantly reduced their financial burden. Subsequently, Taeyoung Industry and Pyeongtaek Cyro were also liquidated. They also sold real estate holdings including their Yeouido headquarters building, the golf courses Dianus CC and Luna X owned by Blue One. The industry views the successive asset sales and resumption of stock trading as effectively completing the financial restructuring.
The real estate project financing (PF) that triggered the workout is also being resolved. Projects deemed difficult to continue have been abandoned or had their contractors replaced. A representative example is the transfer of shares and construction rights of the Seun 5 District redevelopment project in Jung-gu, Seoul, to GS Construction in July. On the 26th of last month, Taeyoung Construction also completed the largest project financing (PF) site, the Magok district 'One Grove (CP4)'.
The remaining task is to secure orders and establish a foundation for performance improvement. Although Taeyoung Construction is still under workout, it is actively pursuing order acquisition. In March, it won a 186.2 billion KRW contract for the 'Seosan-Yeongdeok Expressway Section 3 from Daesan to Dangjin' issued by the Korea Expressway Corporation, and in May, it secured the 'Chuncheon Public Sewage Treatment Facility Relocation and Modernization Private Investment Project (282.2 billion KRW)'. In August, it was selected as the qualified design contractor for the Gwangmyeong City Resource Recovery Facility expansion project and as the preferred negotiation partner for the construction of the West Busan Medical Center. Given its strengths in civil engineering and SOC (social overhead capital), it is expected to focus its active order acquisition efforts in these areas. A Taeyoung Construction official stated, "In addition to implementing existing financial structure improvements, we will actively pursue orders for stable public construction projects."
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