Founded in November 1993, Top Engineering is one of the earliest semiconductor equipment companies in Korea. It is a manufacturer of semiconductor, LCD, LED and OLED process equipment, as well as some semiconductor sealing and testing equipment.
Yifengtai Co., Ltd. was registered and established in August 2017. The company is located in Jinggangshan Economic and Technological Development Zone, Ji 'an City, Jiangxi Province. It is a large-scale high-tech enterprise integrating R&D, design, production, sales and service of LCD, and is the first batch of key construction project units in Jiangxi Province in 2018.
However, enterprise investigation shows that Yifengtai Company has economic disputes with many domestic companies. Because it has not fulfilled its obligations to pay for many times, it has been listed as a trust-breaking enterprise and restricted to high consumption.
Top Engineering said it signed supply contracts worth 7.9 billion won and 3.1 billion won with Yifeng Thai in 2018 for a total of 11 billion won (63 million yuan). Although Yifeng Tai has requested an extension of the contract period, it has not yet inspected the goods and paid for them.
A spokeswoman for Top Engineering said Yifeng couldn't be reached. As a result, the South Korean company decided to cancel the contract.
The spokesman added that it would work with other South Korean companies that have signed similar contracts with Yifeng, as well as the Korea Display Industry Association (KDIA), to resolve the situation. The uncollected amount of this time will be included as loss.
This comes after South Korea's DMS cancelled a 6 billion won contract with Yibongtai in December.
In addition, Vessel has signed a supply contract of KR10.5 billion with Yibongtai Company and YEST has also signed a contract worth KR6.1 billion. The original deadline for the contract was November 2018, and since then it has been extended four or five times, the companies said. Both companies are also expected to announce cancellations of supply contracts, the latest of which had a deadline of May 31.
The company will pay about 100 billion won (572 million yuan) in debt to the South Korean display equipment maker, according to people familiar with the matter.
But crucially, the company could not be reached. According to the report, the Korea Display Industry Association is expected to face fierce criticism. The group has been working with the Jiangxi provincial government, law firms and industry associations, but there has been no apparent progress on Yifeng's repayment.
