This article was posted on the ChosunBiz MoneyMove (MM) site at 3:30 p.m. on Jan. 30, 2026.
General construction company KD (formerly KD Construction) faced a crisis after forced sales of shares and loss of the benefit of term (EOD) due to the largest shareholder's failure to repay loans. On the 30th, market capitalization fell below 10 billion won, increasing the possibility of delisting, but no escape route is in sight.
According to the Financial Supervisory Service's electronic disclosure system on the 30th, KD's majority stake was recently sold through forced sales after KD's largest shareholder, KD Technology Investment, failed to repay 2.275 billion won borrowed from Sangsangin Savings Bank and Sangsangin Plus Savings Bank.
In December 2022, KD Technology Investment pledged all of its KD shares, totaling 7,038,264 shares, as collateral to Sangsangin Savings Bank and borrowed 3 billion won. The condition for exercising the collateral rights was limited to loss of the benefit of term such as default. Afterward, the claims came to be held half by Sangsangin Savings Bank and half by Sangsangin Plus Savings Bank.
Thereafter KD Technology Investment repeatedly extended maturities while repaying about 725 million won of principal. However, KD Technology Investment disclosed on the 23rd that it was in an EOD situation after failing to repay the remaining 1.75 billion won. Creditors disposed of KD shares through forced sales, citing the occurrence of EOD.
The large volume from the largest shareholder poured into the market and negatively affected KD's share price. On the trading day following the EOD, the 26th, KD opened at 572 won and closed at 425 won, down 25%. It has continued to fall since. On the 30th it plunged into the 360-won range, bringing market capitalization below 10 billion won.
KD faces the possibility of delisting. Financial authorities plan to strengthen delisting requirements step by step from this year to accelerate the exit of insolvent corporations. Accordingly, the market capitalization threshold for delisting on the KOSDAQ, which had been 4 billion won, was raised to 15 billion won this year. From this year, if market capitalization remains below 15 billion won for 30 days or more, the company will be designated a management stock, and if it then fails to meet the market capitalization standard for 10 consecutive days or a cumulative 30 days during the following 90 days, it will be delisted. For KD to exceed a market capitalization of 15 billion won, its share price must surpass 562 won.
The problem is that no effective plan appears to exist to rebound KD's share price. KD is currently facing financial difficulties due to a string of development project bombs. An EOD cause occurred in the 2024 mixed-use development project in Sejong, but it breathed a sigh of relief after successfully extending the maturity. However, an EOD occurred in last year's mixed-use development project in Asan, and the Sejong development project is unlikely to be repayable even if its maturity comes due in July this year. In addition, on the 30th, 1.647 billion won borrowed from the Haengdong Credit Cooperative fell into arrears, and debt bombs are detonating simultaneously in several places.
KD ultimately pursued asking small shareholders for help, but this was blocked by financial authorities. KD attempted a rights offering to shareholders in October last year, but the Financial Supervisory Service requested corrections twice, and KD ultimately withdrew voluntarily.
Issuing mezzanine securities to secure liquidity also looks difficult. The company's financial weakness has already been revealed, and with the largest shareholder's equity reduced by more than half through forced sales, governance risk has increased.