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(LEAD) Taeyoung's debt workout is exceptional; limited market impact expected: finance minister | Yonhap News Agency

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(LEAD) Taeyoung's debt workout is exceptional; limited market impact expected: finance minister | Yonhap News Agency

(ATTN: ADDS more remarks in last 3 paras)

SEOUL, Jan. 8 (Yonhap) — Taeyoung Engineering & Construction Co.’s application for a debt-restructuring program would have limited impact on the construction industry, as it is “an exceptional case” in terms of the exposure to real estate project financing (PF) loans, the finance minister said Monday.

Finance Minister Choi Sang-mok made the remarks during a parliamentary session as concerns have risen over its possible spillover effects into troubled peers in South Korea and the overall financial system.

Last month, the ailing builder requested a debt workout due to a cash crunch, and its creditors, led by the state-run Korea Development Bank (KDB), are reviewing self-rescue measures presented by the company to make a decision on whether to initiate a workout process.

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Finance Minister Choi Sang-mok speaks during a parliamentary session in Seoul on Jan. 8, 2024. (Yonhap)

“Compared with other construction companies, Taeyoung has been heavily dependent on PF loans, which is a bit exceptional. I think its impact on other builders would be limited,” Choi said.

The government has called on Taeyoung and the creditors to strive further for a settlement, and the government is “open to every possibility and thoroughly preparing for various measures” to stabilize the financial market and protect related companies and consumers.

It requires 75 percent approval from about 600 creditors to initiate the debt-restructuring process, and the final decision will be made during the meeting slated for Thursday.

“The government takes this case seriously and will well manage the situation based on the principle of a workout scheme,” Choi added.

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The government cited the risk management regarding PF loans and other vulnerable sectors as one of its key economic policy goals for 2024, and vowed to expand liquidity supply programs from the current level of 85 trillion won (US$64.59 billion) to “a sufficient enough level,” when needed.

Choi, however, dismissed the possibility of the government injecting public funds for the builder and other entities struggling with a cash crunch due to their exposure to PF guarantees.

“Ample liquidity has been provided for normal businesses, but troubled firms have been subject to restructuring. Taeyoung’s workout application is the result of such a process,” Choi said. “The government will handle the matter based on due principles and the evaluation by creditors.”

Taeyoung E&C, the 16th-largest builder in South Korea in terms of construction capacity, has been suffering from a liquidity shortage amid high interest rates and a slumping property market, and its outstanding PF loans came to 3.2 trillion won.

People move to attend a briefing session by Taeyoung Engineering & Construction Co. for its creditor on the recent application for a debt restructuring program in Seoul on Jan. 3, 2024. (Yonhap)

People move to attend a briefing session by Taeyoung Engineering & Construction Co. for its creditor on the recent application for a debt restructuring program in Seoul on Jan. 3, 2024. (Yonhap)

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Finance

Departing inspector general targets Council Office of Financial Analysis

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Departing inspector general targets Council Office of Financial Analysis

The $537,000-a-year office created in 2014 to advise the City Council on financial issues and avoid a repeat of the parking meter fiasco has failed to deliver on that mission, the city’s chief watchdog said Tuesday.

Days before concluding her four-year term, Inspector General Deborah Witzburg said a shortage of both adequate staff and financial information closely held by the mayor’s office prevents the Council’s Office of Financial Analysis from helping the Council be the the “co-equal branch of government” it aspires to be.

In a budget rebellion not seen since “Council Wars” in the 1980s, a majority of alderpersons led by conservative and moderate Democrats rejected Mayor Brandon Johnson’s corporate head tax and approved an alternative budget, including several revenue-generating items the mayor’s office adamantly opposed.

But Witzburg said the renegades would have been in an even better position to challenge Johnson if only their financial analysis office had been “equipped and positioned to do what it’s supposed to do” — provide the Council with “objective, independent financial analysis.”

“We are entering new territory where the City Council is asserting new, independent authority over the budget process. It can’t do that in a meaningful way without its own access to financial analysis,” Witzburg told the Chicago Sun-Times.

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Chicago Inspector General Deborah Witzburg’s latest report focuses on the Chicago City Council’s Office of Financial Analysis.

Jim Vondruska/Jim Vondruska/For the Sun-Times

But the Council’s financial analysis office, she added, “has never been equipped or positioned to do what it needs to do. It needs better and more independent access to data, and it needs enough staff to do its job. It has a small number of employees and comparatively limited access to data.”

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The inspector general’s farewell audit examined the period from 2015 through 2023. During that time, the financial analysis office budget authorized “either three or four” full-time employees. It now has a staff of five .

Witzburg is recommending a staffing analysis to identify how many people the financial office really needs — and also recommending that the office “get data directly” from other city departments, “ rather than having it go through the mayor’s office.”

The audit further recommends that the office develop “better procedures to meet their reporting requirements” in a timely manner. As it stands now, reports are delivered “sometimes late, sometimes not at all,” the inspector general said.

“We find that those reports have been both not timely and not complete in terms of what they are required to report on and that those reports therefore have provided limited assistance to the City Council in its responsibility to make decisions about the city’s budget,” she said.

The Council Office of Financial Analysis responded to the audit by saying it hopes to add at least three full-time staffers in the short term and has made “some progress” over the last three years in improving their access to data, but not enough.

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The office was created in 2014 to provide Council members with expert advice on fiscal issues.

For nearly two years the reform was stuck in the mud over whether former 46th Ward Ald. Helen Shiller had the independence and policy expertise to lead the office.

Shiller ultimately withdrew her name, but the office was a bust nevertheless. In an attempt to breathe new life into it, sponsors pushed through a series of changes.

Instead of allowing the Budget chair alone to request a financial analysis on a proposal impacting the city budget, any alderperson was allowed to make that request.

The office was further required to produce activity reports quarterly, not just annually.

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Now former-Budget Chair Pat Dowell (3rd) then chose Kenneth Williams Sr., a former analyst for the office, as director and gave him the “autonomy” the ordinance demanded.

Two years ago, a bizarre standoff developed in the office.

Budget Committee Chair Jason Ervin (28th) was empowered to dump Williams after Williams refused to leave to make way for a director of Ervin’s own choosing.

The standoff began when Williams said he was summoned to Ervin’s office and told the newly appointed Budget chair was “going in a different direction, and I’m putting you on administrative leave” with pay.

“He took all my credentials and access away. I would love to come to work. I wasn’t allowed to come to work,” Williams said then.

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Williams collected a paycheck for doing nothing while serving out the final days remainder of a four-year term.

Ervin’s resolution stated the director “may be removed at any time with or without cause by a two-thirds” vote or 34 alderpersons. He chose Janice Oda-Gray, who remains chief administrator.

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

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Reilly Barnes Returns to Little League® as Purchasing/Finance Assistant

Little League® International has announced that Reilly Barnes accepted a new role as Purchasing/Finance Assistant, effective April 6, 2026. Barnes transitions from a temporary Purchasing Assistant to this full-time position to assist in the year-round demands of purchasing for the organization, as well as the region and Little League Baseball and Softball World Series tournaments. 

“We are thrilled to welcome back Reilly to our team as a full-time Purchasing/Finance Assistant. Reilly’s prior experience, time management, and attention to detail make him an invaluable asset to the purchasing team,” said Nancy Grove, Little League Materials Management Director. “We look forward to the positive contributions he will have on our organization.” 

In this role, Barnes will be responsible for processing purchase requisitions, coordinating souvenir products, and tracking order fulfillment. He will also assist with evaluating suppliers, reviewing product quality, and negotiating contracts for effective operations.  

After most recently working as a Logistician Analyst at Precision Air in Charleston, South Carolina, Barnes, a Williamsport native, returns after honing his skills in the fast-paced environment. Prior to his time at Precision Air, Barnes served as a Procurement Specialist at The Medical University of South Carolina, where his expertise and knowledge were instrumental in supporting both education and healthcare needs.  

“I am thrilled to return to Little League in this full-time role,” said Barnes. “Coming back to my hometown and having the opportunity to work for an organization that has played such a special part of my upbringing means a lot. I can’t wait begin this new opportunity.” 

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Barnes graduated from the University of Pittsburgh in 2022 with a B.A. in Supply Chain Management, Finance, and Business Analytics.  

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Finance

Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

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Why this sleepy Swiss town has become a ‘bolt-hole’ for the Gulf elite

As conflict continues to destabilise the Middle East, the Gulf States elite are seeking solace in European alternatives that offer comparable financial benefits with a far lower risk of war on the doorstep. One such destination is the small Swiss town of Zug, which is becoming a “bolt-hole” for Gulf-based wealth, said the Financial Times.

‘Swiss Monaco’

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