Tongyang Group controversies
Controversies tied to this brand in public sources. A listing is not a finding of fault.
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2014
Arrests of group chairman and senior executives
Hyun Jae-hyun and three other senior executives were arrested on allegations including fraud and malpractice related to financial-product issuance and sales. The episode followed the group’s default and investor losses.
2013
Retail distribution of Tongyang affiliate bonds
Tongyang Securities faced allegations that it sold bonds issued by Tongyang Group companies to individual investors without adequately explaining the risks. Regulators reported evidence of misconduct and said that group leadership had pressured the securities business to distribute the products despite the group’s deteriorating finances.
2010
Hanil Synthetic Fiber acquisition litigation
Prosecutors alleged that the financing structure used for Tong Yang Major’s acquisition of Hanil Synthetic Fiber violated laws concerning leveraged buyouts and fiduciary duties. The trial court rejected the claims, and appellate and Supreme Court decisions upheld that outcome.