Daeheung Construction, the top construction firm in North Chungcheong Province, is preparing to apply for corporate rehabilitation procedures (legal management) due to financial difficulties.
According to the local construction industry on the 8th, Daeheung Construction, based in Chungju, noted through a public announcement the previous day that it is preparing to apply for corporate rehabilitation procedures at the Seoul Rehabilitation Court.
The company ranked first among construction companies in North Chungcheong Province last year with a total construction performance (accrued amount) of 3.275 billion won. In 2023, it recorded the top position in North Chungcheong with an accrued amount of 333.1 billion won.
In terms of construction capacity evaluation amounts, Daeheung Construction ranked 96th nationwide last year.
Daeheung Construction is reportedly set to apply for legal management as early as this week.
Daeheung Construction is said to be experiencing financial difficulties related to six project financing (PF) business sites nationwide, including Pyeongchang and Ansan, which are being carried out as responsibility completion-type land trusts.
In the case of responsibility completion-type land trusts, if the construction company fails to meet the completion deadline, it must bear the financial costs together with the real estate trust company.
A Daeheung Construction official said, “There are aspects where construction costs have exceeded due to interest rate and price increases, resulting in delays in completion,” and noted, “Currently, all business sites have completed construction, but due to poor sales, we are left bearing all financial costs.”
Founded in 1994 as Daeheung Togeon, the company changed its name to Daeheung Construction in 1997. In 2021, it also launched a housing brand called DaHave.