Daijeo Construction, 2nd Largest in Gyeongnam, Also 'Staggering'... Files for Court Receivership

Daijeo Construction, ranked 103rd nationwide and 2nd in the Gyeongnam region in construction capability evaluation, has filed for court receivership due to financial difficulties.

According to the construction industry on the 17th, Daijeo Construction applied for corporate rehabilitation procedures at the Busan Bankruptcy Court the day before.

Headquartered in Gimhae, Daijeo Construction has expanded its business areas boasting a solid position in roads, railways, ports, housing, and urban development since its establishment in 1948.

However, due to the recent downturn in the construction market and soaring construction costs, unpaid receivables have accumulated and construction has been halted, resulting in a net loss of 9.7 billion KRW in 2023 and an operating loss of approximately 540 million KRW.

Daijeo Construction is also a joint implementer of the Seoul Magok District Special Planning Zone development project along with Shindonga Construction, which recently underwent corporate rehabilitation procedures.

Previously, it participated as a joint contractor in the Changwon Hyeondong public housing construction project ordered by Gyeongnam Development Corporation, but the construction was halted due to the court receivership application of the lead company Namyang Construction, and ultimately the project was abandoned.

Since 2023, mid-sized construction companies such as Daewoo Industrial Development ranked 75th, Daewoo Shipbuilding & Marine Engineering Construction ranked 83rd, Daechang Enterprise ranked 109th, Shinil ranked 113th, and Namyang Construction ranked 127th have entered court receivership.

With Shindonga Construction ranked 58th and Daijeo Construction also filing for court receivership earlier this year, concerns over the bankruptcy of mid-sized construction companies are growing in the industry.

The Gyeongnam provincial government plans to assess the status of local projects involving Daijeo Construction and examine the impact of the court receivership application on the province to prepare accordingly.

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