The bankruptcy proceedings of Woongjin Energy, the only domestic producer of materials such as wafers needed for solar panel manufacturing, have been terminated midway by a court decision. The court determined that it would be difficult to secure funds to repay creditors even if all company assets, including factories, were sold.
According to the legal community on the 30th, the Seoul Bankruptcy Court's 13th division (presided over by Director General Kang Hyun-koo) announced on the 24th that it was "terminating the bankruptcy." It also explained the reason by stating, "The funds are insufficient to cover the expenses of the bankruptcy procedure."
Earlier, on July 26, 2022, the court declared Woongjin Energy bankrupt. Following this, Woongjin Energy attempted to sell its solar component manufacturing plant located in Yuseong District, Daejeon, to secure the necessary expenses for the bankruptcy proceedings. This plant had a land area of approximately 14,000 pyeong and a building area of approximately 17,800 pyeong, with an auction appraisal value of 139.5 billion won.
The auction of the factory began in September 2022 but was only sold earlier this year for 47.8 billion won after more than two years of repeated failures. This was about 34% of the initial appraisal price. According to Woongjin Energy's last report before its bankruptcy for the first quarter of 2022, the company's total borrowings amounted to 53.9 billion won.
Woongjin Energy was established in 2006 as a joint venture between Woongjin Group and the U.S. solar panel manufacturer SunPower. It was the only specialized manufacturer of ingots and wafers used in solar panels in Korea. However, due to aggressive pricing from Chinese solar companies, it applied for corporate rehabilitation procedures in May 2019. Sales, which were once at the level of 300 billion won, dropped to 40 billion won in 2019.
Afterward, it made several attempts to sell its management rights, but only some Chinese companies expressed acquisition intentions, leading to failure. In June 2022, just before declaring bankruptcy, Hanwha Solutions was mentioned as a leading candidate, but the deal ultimately fell through.