[비즈한국] The asset liquidation of Dayou Winia Group, known for its kimchi refrigerator brand 'Dimchae,' is now extending into its branding. Following the decision by the bankrupt Winia Electronics to put its trademark rights up for public auction, Dayou Holdings, the group's intermediate holding company, is also in the process of disposing of dozens of trademarks for the group's common brand, 'DAYOU.'
Minimum Trademark Price 600,000 Won… ‘DAYOU’ Brand Also Being Disposed Of
The bankruptcy trustee for Winia Electronics, currently undergoing bankruptcy proceedings at the Seoul Bankruptcy Court, issued a notice for a collective sale of intellectual property rights (trademarks and service mark rights) on the 28th of last month. The assets for sale include six air conditioner-related trademarks such as 'Dynamic Inverter,' 'Dynamic Waterfall,' and 'Clean Jet Shower.' These are registered trademarks under Class 7 (machinery) and Class 35 (advertising and business services), and their legal protection expires on the 20th of next month.
Bidding will take place over four rounds through the OnBid internet electronic bidding system. The minimum bid for the first round (June 11) is 6 million won, which drops to 4.2 million won and 2.4 million won if there are no bids. By the fourth round (June 19), the minimum bid drops to 600,000 won. If there is no winning bidder, the bankruptcy trustee will waive the liquidation of the trademark rights, and it may then be disposed of separately by the liquidator.
In bankruptcy proceedings, the public auction of trademark rights is a stage of liquidation to turn remaining assets into cash. Winia Electronics is currently undergoing the process of repaying creditors through the sale of its existing assets.
Winia Electronics halted factory operations following its bankruptcy declaration last year. According to the labor union, it is reported that about 300 employees received only 30% of their severance pay.
Winia Electronics is also conducting a public sale of its 4.2% stake (33,600 shares) in the Korea Management Association Consulting (KMAC). Generally, minority stakes in unlisted companies are considered low-liquidity assets as they lack a management premium. The minimum bid for these shares, announced last March, also reflects a liquidity discount, set at half the value of the proportional net asset value (approximately 4.3 billion won against net assets of 104.3 billion won). The price will drop with each round until the fifth round (1.2 billion won), with the deadline for the notice set for June 11.
Asset liquidation at the group level is also underway. Dayou Holdings, the intermediate holding company of Dayou Winia Group, issued a notice for the collective disposal of 64 trademarks and service mark rights under the 'Dayou' brand on the 2nd.
The trademarks cover various fields, including home appliances, automobiles, and lodging (MAMAN STAY). 'Dayou' is the name former Chairman Park Young-woo has used as a common brand for the group. The past name changes of Winia Dimchae to Dayou Winia Dimchae and Winia Electronics to Dayou Winia Electronics were part of the same branding strategy. With even the group's common brand trademarks included in the disposal, the asset liquidation process appears to be expanding into the brand domain.
'Simultaneous' Liquidation by Subsidiary
Dayou Winia Group is a conglomerate specializing in home appliances and auto parts led by former Chairman Park Young-woo. It once boasted key subsidiaries such as Winia (kimchi refrigerators), which held a 40% domestic market share with its 'Dimchae' brand, Winia Electronics (air conditioners), Winia Electronics Manufacturing (production), and Dayou A-Tec002880, a car seat manufacturer.
Dayou Winia Group, which fell into a liquidity crisis due to excessive business expansion and accumulated financial burdens, faced difficulties in normalizing operations after failed sale negotiations with private equity firm Seoul PE in March of last year. Subsequently, its subsidiaries entered into rehabilitation and bankruptcy proceedings one after another, and Winia was delisted last year.
According to the Ministry of Employment and Labor, the total unpaid wages for the three home appliance subsidiaries reached approximately 196.1 billion won since 2021, and the issue of compensation for unpaid workers remains unresolved. Meanwhile, controversy is mounting over the owner family's continued acquisition of shares in Dayou A-Tec, the only profitable subsidiary in the group. Dayou A-Tec is a supplier of car seats to Kia and Gwangju Global Motors (GGM).
Former Chairman Park, who was sentenced to four years in prison in the first trial last February on charges of unpaid wages, is currently appealing the decision. During the appeal trial held in March, Park's side argued that he acted as a holding company head, not as a representative of each individual subsidiary, and thus was not responsible for the wage arrears. The Winia labor union is protesting that the owner family, including the former chairman, failed to fulfill their promises to contribute personal assets. The Winia Dimchae branch of the Korean Metal Workers' Union stated, "Although Winia Dimchae has entered court receivership, the problem of unpaid wages has not been resolved."
Currently, Dayou Winia Group subsidiaries are undergoing rehabilitation and bankruptcy procedures in various courts by entity. Dayou Holdings and Winia Electronics are liquidating remaining assets according to bankruptcy procedures, while Winia Electronics Manufacturing has already gone bankrupt. According to disclosures, the group's Thailand and Mexico subsidiaries resolved to dissolve and liquidate in June and August 2024, respectively, and are currently undergoing liquidation procedures under local laws. The subsidiary Winia D-Lab was also declared bankrupt in August 2024.
In the case of Winia, the liquidation-type rehabilitation plan is currently being approved by the Gwangju Bankruptcy Court. The rehabilitation plan submitted this March includes the acquisition of some assets, such as the Dimchae brand and production plants, by the prospective buyer, Hanmi Technology Industry. Hanmi Technology Industry, a small-to-medium-sized partner company specializing in wholesale and retail of home appliances and parts such as kimchi refrigerators and air conditioners, was selected as the preferred bidder following a public auction held after the court approved the start of rehabilitation procedures last October.
The auction for Winia Electronics' trademark rights will run until the 19th of this month. Winia's liquidation-type rehabilitation plan still awaits the creditors' meeting resolution and final court approval, after which the asset transfer process will proceed.