This article was displayed on the ChosunBiz MoneyMove (MM) site at 5:41 p.m. on Feb. 9, 2026.
Shinyoung, a body parts and mold supplier for Hyundai Motor, succeeded in repaying most of the investment funds it received from financial investors (FI). Shinyoung is said to have responded to investors' repayment demands by securing repayment resources through self-rescue measures, including selling its U.S. subsidiary.
According to the investment banking (IB) industry on the 9th, Shinyoung has repaid all but 6 billion won of about 30 billion won owed to Korea Investment & Securities Co. Private Equity (PE) and SG Private Equity (PE). However, because it repaid with the company's own funds, reducing its financial leeway, it is continuing to raise funding for operations and other uses.
Earlier, Korea Investment & Securities Co. PE and SG PE acquired 40 billion won worth of redeemable convertible preferred shares (RCPS) issued by Shinyoung through a restructuring fund they jointly managed in 2021. Shinyoung first repaid 12 billion won in Aug. 2023, but the repayment burden swelled to around 30 billion won after adding interest to the remaining principal of 22 billion won.
To raise these resources, Shinyoung signed a total 40 billion won investment attraction agreement in 2024 with Woori PE and Woori Asset Management, and first received a 15 billion won payment to make additional repayments. However, the remaining 25 billion won was to be injected on the condition that the U.S. subsidiary Car Tech's Nasdaq listing succeeded, and Shinyoung planned to settle the remaining investment funds from Korea Investment & Securities Co. PE and SG PE based on the funds secured through Car Tech's listing and the subsequent payment.
However, Car Tech's listing attempt via a SPAC merger ultimately did not close and fell through. Procedures dragged on as the private capital raise of at least $50 million, a prerequisite for the merger, was delayed, and although the SPAC side extended the deadline several times, it failed to meet the necessary requirements by the final deadline. Car Tech, established in 2016 in Opelika, Alabama, is a Shinyoung subsidiary (78.32% stake) that supplies bodies to BMW and Mercedes-Benz, and as of 2024 had annual sales of about 82 billion won.
Accordingly, since the second half of last year, Shinyoung has been raising funds to prepare money to repay Korea Investment & Securities Co. PE and SG PE. But that also failed to gain traction, and it had to choose to sell Car Tech to raise repayment funds. In the end, Shinyoung sold Car Tech in Aug. last year to Guyoung Technology, a KOSDAQ-listed company. The performance bond is 6.8 billion won, and the total sale price was not disclosed.
An IB industry official said, "Hyundai Motor partners have a structural limitation in that, due to the nature of capital-intensive industries, large CAPEX (capital expenditure) comes first and it takes a long time before cash builds up," adding, "However, Shinyoung's performance is solid, so it is not in a significant cash crunch."
On a consolidated basis, Shinyoung's 2024 sales were 600.6 billion won, and operating loss was 8.7 billion won. The previous year's sales were 623 billion won, and operating profit was 18.1 billion won.