fss probing tong yang group\s moneylending unit
Last Updated : GMT 16:22:18
Arab Today, arab today
Arab Today, arab today

FSS probing Tong Yang Group\'s money-lending unit

Arab Today, arab today

Arab Today, arab today FSS probing Tong Yang Group\'s money-lending unit

Seoul - Yonhap

The financial regulator said Wednesday it has started a special probe into a financial arm of cash-strapped Tong Yang Group to check on its debt sales in connection with the conglomerate\'s liquidity shortage. The Financial Supervisory Service (FSS) has set out for an inspection on Tongyang Financial Services Corp., a wholly owned money-lending subsidiary of Tong Yang Securities Inc., the brokerage unit of the troubled namesake company Tong Yang Group. The probe came as South Korea\'s 38th-largest conglomerate is on the verge of bankruptcy after it ran out of cash to repay maturing debts worth 1.1 trillion won (US$1.02 billion) due to a slowdown in their building and hospitality businesses. The embattled family-run group has had no success in getting financial support from either its creditor banks or its former affiliate run by a relative. State-run Korea Development Bank (KDB), to which Tong Yang Group owes the majority of its bank loans, repeatedly denied the possibility that the lender will offer help to shore up the ailing conglomerate. \"We cannot help those who took high risks for high returns with taxpayer money,\" a KDB executive said, referring to investors who bought debts issued by Tong Yang Group. Hyun Jae-hyun, the head of Tong Yang Group, made a personal request to his brother-in-law Tam Chul-kon, who runs Korea\'s major confectioner Orion Corp., to provide a loan guarantee for new bond issuances. Tam refused. In a desperate move, Tong Yang Group was seeking to raise 65 billion won through selling 18-month notes on Thursday, but gave up after the FSS apparently put a brake on it, citing that the group failed to specify risk elements in its registration report submitted to the Korea Exchange. Later in the day, FSS Gov. Choi Soo-hyun held an urgent press briefing to ask investors not to fret about the situation and assured them that their assets are safely housed in the state-run depository and trustee banks in accordance with rules. Tong Yang Group\'s possible default has prompted a bank run among investors who flocked to a nearby branch to withdraw their securities accounts tied to the company debts. The FSS probe on Tong Yang Group\'s money lender follows the watchdog\'s preceding inspection on Tong Yang Securities, the main seller and manager of Tong Yang Group\'s debts, to see if there are any irregularities with the bond sales. Tong Yang Group has six financial arms under its wing. Of the liabilities, some 370 billion won worth of commercial papers (CPs), a type of short-term corporate debts, will come due within this year, the FSS said, adding to fears that the liquidity squeeze might lead to massive losses for retail investors who bought such bonds. The regulator noted Tong Yang Group may face more trouble with refinancing the debts in time since a change in local law, taking effect from next month, will prohibit a financial affiliate of a company from selling low-rated bonds issued by its parent firm or other subsidiaries. The financial watchdog said the probe is to prevent any financial losses that might incur from Tong Yang Group\'s potential default as that will be catastrophic for retail investors. According to FSS data, Tongyang Financial Services has so far issued 45.7 billion won worth of CPs. About 16,000 retail investors hold Tong Yang Group\'s CPs worth a total of 456.3 billion won, with some 31,000 others having invested in 1 trillion won worth of corporate bonds sold by the conglomerate.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fss probing tong yang group\s moneylending unit fss probing tong yang group\s moneylending unit

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

fss probing tong yang group\s moneylending unit fss probing tong yang group\s moneylending unit

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today Prince's vision spurs new Cornwall village

GMT 03:12 2017 Saturday ,18 November

Prince's vision spurs new Cornwall village
Arab Today, arab today Keep kids busy at Thanksgiving gatherings

GMT 11:14 2017 Friday ,10 November

Keep kids busy at Thanksgiving gatherings
Arab Today, arab today Israel ready to cooperate with Saudi

GMT 06:31 2017 Friday ,17 November

Israel ready to cooperate with Saudi
Arab Today, arab today Airbnb raided by Japan

GMT 01:55 2017 Saturday ,18 November

Airbnb raided by Japan
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Australian academic's book pulled

GMT 15:20 2017 Monday ,13 November

Australian academic's book pulled
Arab Today, arab today May under Brexit pressure at EU reform summit

GMT 02:14 2017 Saturday ,18 November

May under Brexit pressure at EU reform summit
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla unveils its all-electric semi truck

GMT 02:59 2017 Saturday ,18 November

Tesla unveils its all-electric semi truck
Arab Today, arab today Baidu speeds up AI progress

GMT 11:46 2017 Friday ,17 November

Baidu speeds up AI progress
Arab Today, arab today Hanan Metawe denies apology for “Major Treason”

GMT 12:22 2017 Thursday ,16 November

Hanan Metawe denies apology for “Major Treason”
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 08:06 2017 Wednesday ,15 November

Ayten Amer happy for “The Flood” success

GMT 11:15 2017 Thursday ,16 November

Angola oil boss sacked by father's protege

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 11:49 2017 Thursday ,17 August

Egyptian artist presents new collection of designs

GMT 06:13 2017 Friday ,17 November

Pope denounces healthcare inequality

GMT 05:18 2017 Thursday ,16 November

Boeing announces $27bn from flydubai

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday