Yoon Se-young, the founder of Taeyoung Group and SBS, is returning to the management as the Chief Executive Officer (CEO) after a five-year hiatus. At the age of 90, he is stepping in to lead the group's parent company, Taeyoung E&C, which is currently facing a liquidity crisis.
On Dec. 4, Taeyoung Group announced that Yoon Se-young will return to the group as the Executive Chairman of TY Holdings, the group's holding company. This decision comes after five years since he handed over the chairmanship to his son, Yoon Seok-min, 59, in March 2019.
It is rare to find a 90-year-old CEO with approximately 6 trillion won in revenue, not just in Korea but globally.
"Due to increasing difficulties in project financing (PF) contingent liabilities, the Founding Chairman has decided to return to the front line of management to fulfill Taeyoung E&C's social responsibilities," the company said.
Yoon Se-young took early steps to ensure a smooth succession plan by transferring the majority of his shares to his son in 2002. As a result, Yoon Seok-min now holds the position of inside director and chairman of the board for both TY Holdings and Taeyoung E&C. For TY Holdings, Yoon Se-young entrusted the management to Yoo Jong-yeon, a seasoned businessman aged 58.
However, this may change when he takes over the entire group. Yoon Se-young reportedly said to those around him, "I am determined to lead the entire group, including its affiliates, and bring back the spirit of Taeyoung E&C's founding 50 years ago. I will give my all to achieve this."
"The specific management structure and roles of the group will be finalized after the board of directors and shareholders' meeting in March of next year," said a TY Holdings official.
Taeyoung E&C, which is ranked 16th in Korea's construction capacity rankings, has been facing a liquidity crisis for almost a year due to the real estate downturn that began in the second half of last year and the 'Legoland crisis' that has caused the PF market to tighten.
In late September last year, a domestic credit rating agency identified the company and several other construction companies as a 'company that needs to monitor PF contingent liabilities.' Since then, rumors have circulated that Taeyoung E&C failed to extend the PF maturity and requested funding from financial regulatory authorities.
A construction industry insider said, "It is true that the company had difficulties in obtaining PF for its office building project in Seongsu-dong, Seoul," and added, "The company's performance is strong, but it faced a temporary funding shortage due to unfavorable market conditions."
Taeyoung E&C has resorted to raising funds through large-scale borrowing and the sale of affiliates. Earlier this year, the company secured approximately 400 billion won through a corporate bond issue and fundraising. Taeyoung E&C is also in the process of finalizing a deal with a global private equity fund to sell Taeyoung Industries, an affiliate responsible for the group's logistics business, for approximately 240 billion won.
"Once we receive the proceeds from selling the affiliate, most of our liquidity issues will be resolved," said an official at Taeyoung E&C.
Yoon Se-young graduated from Seoul National University Law School in 1961 and began his career as an aide to then-Democratic Party of Korea Representative Lee Dong-nyeong. He later worked as an executive at a construction company before leaving and founding Taeyoung E&C in 1973.
In 1990, the company was chosen as the first private broadcaster in Korea to establish Seoul Broadcasting Corporation (now SBS), which marked the beginning of its rise to prominence. At that time, the company was ranked among the top 30 contractors.
2023 marks the 50th anniversary of the company's founding in 1973 under the name Taeyoung Development. In his New Year's speech earlier this year, Yoon Se-young stated that despite the mounting difficulties, the company will overcome them with "principles and honesty."
Taeyoung E&C official said, "Even now, the founding chairman makes the final decision on major business issues within the company, but he plans to take on all legal responsibilities as CEO in the future," adding, "Despite his age, he is still fit enough to play a full round of golf."
This article was originally published on Dec. 5, 2023.