The construction companies Samjeong Corporation and Samjeong ENC, responsible for the Banyan Tree Resort in Busan where six people died in a fire, have filed for corporate rehabilitation due to a liquidity crisis.

On the 16th, officials from the police, fire investigation team of the scientific investigation department, fire authorities, National Forensic Service, and National Disaster Safety Agency are conducting a joint inspection at the construction site of the Banyan Tree Hotel in Gijang-gun, Busan./Courtesy of News1

On the 27th, Samjeong Corporation and Samjeong ENC noted that they had filed for corporate rehabilitation with the court. They explained, "Due to the recent construction market slump and rising prices, there has been over 250 billion won in uncollectible receivables, leading to a liquidity crisis stemming from various factors, including delays in long-term project development."

They also said, "The recent fire at the construction site of the Banyan Tree Resort has made the recovery of remaining construction cost receivables uncertain, and the complete suspension of additional financing from financial institutions has exacerbated the management crisis," adding, "Samjeong Corporation and Samjeong ENC had to invest over 100 billion won of their own funds for construction costs due to sluggish sales of the Banyan Tree Resort and have not been compensated by the developer."

They promised, "Through the rehabilitation process, we will do our best to improve our financial structure in a timely manner, normalize business operations, and minimize the impact on creditors," stating, "We will conduct the corporate rehabilitation process transparently and sincerely, and we will continue responsible management under the court's supervision."

Samjeong Corporation expressed deep condolences to the victims who lost their precious lives in the Banyan Tree fire incident and extended heartfelt words of comfort, while stating, "We will do our utmost to ensure that appropriate compensation and support for the victims and their families can be provided, separate from this rehabilitation process."

The fire occurred at the construction site of the Banyan Tree Haeundae Busan near Orandae Park in the Osi-ri Tourism Complex, Gijang-gun, Busan, at 10:51 a.m. on the 14th. Six workers died in the blaze, and 27 others sustained minor injuries from smoke inhalation.