Emergency as Namyang Construction Files for Court Receivership ... Concerns Rise Over Hyundong Namyang Hutton and National Sports Festival Main Stadium Projects

Namyang Construction, the contractor for the public apartment complex in Hyeondong, Changwon, Gyeongnam, and the Gimhae Sports Complex construction project, has applied for court receivership once again, raising concerns about potential disruptions to the projects.

According to Gyeongnam Development Corporation and Gimhae City on the 12th, Namyang Construction submitted an application for corporate rehabilitation (court receivership) to the Gwangju District Court 1-1 Bankruptcy Division the previous afternoon.

Established in 1958, Namyang Construction is a mid-sized construction company based in the Gwangju and Jeonnam regions, and ranked 127th in construction capability evaluation as of last year.

Previously, the company applied for court receivership in April 2010 and completed the rehabilitation process in August 2016. However, facing financial difficulties again, it has applied for court receivership eight years after normalizing its management.

The construction industry estimates that Namyang Construction has struggled due to external factors such as material supply issues, payment settlements, and unsold units.

Perspective view of Namyang Hutton Apartment in Hyeondong, Changwon, Gyeongnam. [Image provided by Gyeongnam Development Corporation]

Hyeondong Namyang Hutton, the public apartment complex in Changwon constructed by Namyang Construction, was originally scheduled for occupancy in February, but the move-in date was postponed to May and then delayed again to the upcoming August. The current construction progress rate is around 92%.

Gyeongnam Development Corporation received notification of the court receivership application from the construction company the previous afternoon and held an emergency meeting with the joint contractors, including Namyang Construction.

While awaiting the result of the court receivership application, Gyeongnam Development Corporation has requested Namyang Construction to continue the construction as much as possible for the next month and asked the other joint contractors to proceed with the subsequent phases.

Gyeongnam Gimhae Sports Complex under construction.
[Photo by Gimhae City Hall]

Namyang Construction is also responsible for the construction of Gimhae Sports Complex, which will serve as the main stadium for the National Sports Festival and National Para Games scheduled for October.

Immediately after receiving notification of the court receivership the previous afternoon, Gimhae City began preparing countermeasures regarding the remaining construction and completion procedures for the stadium.

In addition to the final stages of construction, the city is also focusing on handling the aftermath of the collapse of a 12-meter-high, 40-meter-wide retaining wall along the eastern circulation road of the stadium that occurred on the 1st of this month.

To ensure there are no disruptions to the Gimhae Sports Complex project, which is approximately 99.3% complete, the city is working on alternatives in consultation with local construction companies participating in the consortium with Namyang Construction.

This content was produced with the assistance of AI translation services.