Tong Yang Group chairman Hyun Jae-hyun has come under growing pressure to give up his personal properties as an emergency move to prevent the conglomerate from falling into default, according to some market insiders Sunday.

The observers highlighted Financial Supervisory Service Gov. Choi Soo-hyun’s recent remarks that Tong Yang Group owners are required to take direct responsibility by conducting concrete measures.

They also cite the lukewarm stance of the group’s creditors including the state-controlled Korea Development Bank over a possible bailout funding to the debt-ridden conglomerate.

An executive at a commercial bank echoed the view of the chief regulator Choi, reiterating that chief Hyun “should be at the ready to do whatever it takes and put up with any difficulties like relinquishing his assets.”

Tong Yang Group is to face a critical situation this week as more than 100 billion won ($90.9 million) worth of its corporate bonds and commercial paper are scheduled to mature on Monday.

It has to redeem 90.5 billion won in corporate bonds and 19.5 billion won in commercial paper by Tuesday.

Several units of the group have reportedly issued 60.6 billion won worth of corporate bonds, but the group yet to secure 49.4 billion won, according to FSS officials.

Though it is struggling to secure liquidity through the sale of its key subsidiaries such as appliance manufacturer Tong Yang Magic, the outlook for such deals is uncertain. The sale of Tong Yang Magic, for instance, could generate about 100 billion won in cash.

The nation’s 38th-largest conglomerate (when state-funded firms are excluded) is saddled with maturing debt, including commercial paper issued by its subsidiaries, totaling 1.1 trillion won.

Posting the historic debt-to-equity ratio of 1,533 percent as of the first half, based on Tong Yang’s consolidated financial statements, it is suffering a liquidity crisis as creditors and its sister group Orion refused to help the embattled group.

The chairmen of Tong Yang and Orion are the late Tong Yang Group founder Lee Yang-gu’s two sons-in-law: Hyun and Tam Chul-kon.

By Kim Yon-se (kys@heraldcorp.com)