Tong Yang Group is looking to undertake massive restructuring for improving its financial structure. The restructuring plan includes stake sales of non-core business units excluding cement, thermal power generation and finance units, which are considered Tong Yang's future growth engine. The company said that it has completed its work to examine the business restructuring and reorganization plans and begin restructuring efforts in earnest in accordance with the top management's firm commitment to shake-out.

Tong Yang will raise KRW 2 trillion by the first half of 2013 and will finish its group-wide restructuring by the end of 2013 if the restructuring pays off. The target of restructuring includes all affiliates in the unit of construction materials (TONGYANG Cement & Energy Corporation), home-appliances (Tong Yang Magic Co., Ltd.), textiles (Hanil Synthetic Fiber Co. Ltd.), construction and power plants, which are Tongyang Inc, holding company of Tongyang Group's five major business units.

The work for finding potential buyers of TONGYANG Cement & Energy and Tong Yang Magic has already started. TONGYANG Cement & Energy Corporation and Tong Yang Magic Co., Ltd. are reported to be the most profitable business unit among all affiliates. Tong Yang is also considering selling Tong Yang Leisure Co.,Ltd., TONGYANG NETWORKS Corporation and Tong Yang Online Co., Ltd. But Tong Yang has decided to keep its two financial businesses as they are performing better than the group's manufacturing businesses amid the recession.

“Our ready-mixed concrete and construction businesses fell victim to the downturn in the construction sector, which was the greatest contributor to our difficulty. Furthermore, we continued to bear more financial burden to pay back loans, forcing us to undertake the massive group-wide restructuring,” an official of Tong Yang said.