Chungbuk's Top Performer Daheung Construction Prepares to File for Court Receivership Amid Financial Difficulties

Yonhap News

Daehung Construction is reportedly preparing to file for corporate rehabilitation proceedings (court receivership) due to financial difficulties.

According to industry sources on the 8th, Daehung Construction, headquartered in Chungju, is preparing to apply for corporate rehabilitation proceedings at the Seoul Rehabilitation Court.

Last year, the company ranked first in Chungcheongbuk-do with construction performance (work done) amounting to 300.275 billion KRW among general construction companies. In the construction capability evaluation, it ranked 96th nationwide as of last year.

Daehung Construction is expected to file for court receivership within this week. The company is reported to be facing financial difficulties related to six nationwide PF project sites (residential lodging facility projects) including Pyeongchang and Ansan, which were carried out through responsibility-completion type (management type) land trusts. In the case of responsibility-completion type land trusts, if the contractor fails to meet the completion deadline, the construction company must bear all financial costs together with the real estate trust company.

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