Tongyang Cement goes into court receivership

Tongyang Cement has become the fifth victim of the group-wide financial agony. On 1 October the cement unit of Tongyang Group said in a regulatory filing that it applied for court receivership with the Chuncheon (Gangwon Province) District Court.

Earlier on the same day, another group company specialising in IT services, Tongyang Networks, had asked for court receivership. As a result, following similar steps by Tongyang Corporation, Tongyang Leisure and Tongyang International, the total number of group companies going to workout programmes is five.

Analysts say that there is no other way for Tongyang Group to survive than to go through liquidation. The Korea Exchange on the same day decided to suspend the trading of Tongyang Cement shares until the date the company begins undergoing reorganisation proceedings.