Taeyoung Construction Creditors Group Considers 400 Billion Won New Funding Support

The creditors of Taeyoung Construction, which is undergoing a workout (corporate financial restructuring), are considering providing new funding worth 400 billion KRW.

The fate of Taeyoung Construction, which applied for a workout (corporate restructuring) after failing to repay real estate project financing (PF) loans worth around 9 trillion won, will be decided on the 11th. The photo shows the Taeyoung Construction headquarters in Yeongdeungpo-gu. Photo by Jo Yongjun jun21@

According to financial sources on the 14th, KDB Industrial Bank and the five major financial holding companies, the main creditors of Taeyoung Construction, plan to discuss a proposal to open a 400 billion KRW credit line at the 'Taeyoung Construction 2nd Financial Creditors' Meeting' scheduled for the 23rd.

This is to temporarily resolve liquidity shortages that may occur before asset sales when Taeyoung Construction implements its self-rescue plan. It is expected that the Industrial Bank will provide 400 billion KRW in support, while the remaining banks will commit to bearing the loss burden.

An official from the Industrial Bank explained, "This is a kind of bridge loan support until the sale of affiliates such as Blue One is completed," adding, "It will be used as operating funds at project financing (PF) sites, such as payments to subcontractors."

Regarding the plan to liquidate 60 Taeyoung Construction PF sites, the Industrial Bank initially requested each major creditor group to submit PF handling plans by the 10th of this month, but the submission deadline has been extended to the 25th.