Value context and insight. lkm@koreatimes.co.kr
Reporter's notebook Taeyoung founder's crocodile tears
Taeyoung Group founder Yoon Se-young / Korea Times file
By Lee Kyung-min
What are crocodile tears?
Cambridge Dictionary defines them as “tears that you cry when you are not really sad or sorry.” Merriam-Webster says they are “false or affected tears” associated with “hypocritical sorrow.”
I heard of them a lot, like everybody else, but did not know exactly where the phrase came from. So I looked it up.
Apparently, crocodiles shed tears while consuming their prey. They shed tears when they chew and swallow food because they have the same nerves for controlling the tear glands and chewing.
However their metabolism works, one thing is for sure: they do it because it is in their interest, not because they feel a deep sense of remorse.
This was precisely what Taeyoung Group founder Yoon Se-young did yesterday.
The 90-year-old honorary chairman of the group appeared before about 700 creditors at the Korea Development Bank (KDB) to appeal for a debt workout of the group’s troubled builder Taeyoung Engineering and Construction (E&C).
“I am at fault for business overreach and mismanagement of the firm, causing this painful bankruptcy crisis,” he told the KDB-led creditors meeting at Yeouido, Seoul, Wednesday.
“It is the fault of the management, including me. I am afraid Taeyoung’s crisis would deal a deadly and irrevocable blow to the economy. Please approve the debt workout, so I do not commit a crime of such a grave nature against our partner firms, investors, creditors, the country and the Korean people.”
As sincere and earnest as he tried to make the appeal seem, few creditors believed him.
The group outlined a plan to fund the troubled construction company, but there was no mention of selling off SBS, a local broadcaster, the most lucrative affiliate of the group.
Also missing were plans to use his family assets as a source to navigate the acute liquidity crisis.
The collective distrust of creditors is explained in large part by the group orienting 89 billion won ($67 million) to pay off the debt of TY Holdings, the group’s holding firm. It used part of 154.9 billion won cashed after the sell-off of Taeyoung Industries, the group’s overseas trading affiliate. The group had long said the 154.9 billion won would be used in full to salvage the construction affiliate first.
Obviously, the last-minute arbitrary move was to insulate the local broadcaster from ongoing corporate restructuring uncertainties at all costs, even if the construction affiliate is torn up for pieces.
Amplifying the creditor frustration is Taeyoung E&C's failing to pay 45.1 billion won in accounts receivables-backed loans due Dec. 29 of last year. At the time, the group called for a delay in TY Holdings’ debt obligations on the condition that Yoon’s family assets be sourced to pay off debt.
The slew of damning developments led to “lost trust,” as best characterized by KDB Chairman Kang Seog-hoon.
“It is extremely regretful that Taeyoung failed to implement previously agreed upon self-rescue measures,” he said at the bank headquarters, Wednesday. “Taeyoung will almost certainly not have a prayer of winning approval of the creditors.”
Unless otherwise advised, frustrated creditors are not likely to approve Taeyoung’s application for debt workout. Their Jan. 11 meeting will determine whether the workout will materialize.
Yoon ended his tearful appearance by saying the troubled affiliate is “of a great growth potential and deserving of survival, if given a chance.”
Well, plenty of chances were given.
Is he deluding himself that tears of greed justify the protection of his best interests at the expense of creditors?
Perhaps he should reflect on the past few days and see if he and a crocodile have something in common.
Otherwise, the name Taeyoung will become synonymous with the shamelessness of a man who should have known better.
I hope he comes to his senses in time.