Restructuring
Taihan Electric Wire said on October 7 that Seol Yun-Seok, the president and third-generation owner of the company, has decided to give up his management rights and step down as president in order to proceed with a restructuring plan. Thus, the control of the company by the Seol family will come to an end after 58 years.
However, this will not greatly affect the company’s performance or restructuring. Most of its core subsidiaries have already been sold, and there is no sign of the wire and cable industry’s escape from the recession.
Established in 1955, Taihan grew as a first-generation cable maker in Korea. But in the 2000s, the company ran into financial difficulties as a result of reckless investment, thus prompting the restructuring process in 2008. There are 10 creditors, including Hana Bank, KDB Bank, Woori Bank, and KB Kookmin Bank, and the total debt amounts to 1.4 trillion won (US$1.3 billion).
The wire and cable industry’s recovery is uncertain in that the construction industry, which is the largest market for wires and cables, continues to see business decline in the global recession.