Dongbu Construction Receives Full Payment of 13.5 Billion KRW for Legoland Completion Balance

[Asia Economy Reporter Noh Kyung-jo] Dongbu Construction recently announced on the 3rd that it has received the full amount of 13.581 billion KRW in unpaid completion payments for the 'Legoland Infrastructure Construction' from Gangwon-do Jungdo Development Corporation.

Dongbu Construction Building, Yeoksam-dong, Gangnam-gu, Seoul / Photo by Dongbu Construction

The unpaid amount refers to money billed for construction progress but not yet received. The original payment deadline for the unpaid amount Dongbu Construction received this time was October 10 of last year. With this, Dongbu Construction has resolved the issue of receiving completion payments for the Legoland infrastructure construction that had continued for about four months, thereby alleviating financial burdens and liquidity risks.

The unpaid amount received this time is expected to be used for subcontractor construction payments and Dongbu Construction's working capital. Dongbu Construction is known to have made efforts to minimize damage by prepaying subcontract payments to subcontractors facing financial difficulties. It also took the lead in resolving the situation through active communication and consultation with Gangwon Jungdo Development Corporation and Gangwon Province.

A Dongbu Construction official said, "We are very pleased that our proactive efforts based on trust with Gangwon Jungdo Development Corporation have led to the recovery of unpaid payments," adding, "We expect this to help resolve subcontractors' financial difficulties and improve Dongbu Construction's cash flow."

The Legoland theme park infrastructure construction was carried out by Dongbu Construction from 2020 until October 2022. Dongbu Construction, which performed tourism site and residential land development works, completed the project last year after undergoing cultural heritage excavation surveys, redesigns due to plan changes, and winter construction to meet the official opening date.