Ankang Construction, ranked 138th in construction capability assessment, has applied for corporate rehabilitation procedures (court management). This year, corporations such as Shindongah Construction, Daejeo Construction, and SAMBU Construction have continued to choose court management.
According to the Seoul Rehabilitation Court on the 26th, Ankang Construction filed for corporate rehabilitation procedures on the 24th. The court announced a comprehensive injunction on the 26th. This measure prohibits the compulsory execution of rehabilitation claims or rehabilitation security rights against all rehabilitation creditors and rehabilitation secured creditors until a decision is made regarding the application for rehabilitation procedures.
A spokesperson for the Seoul Rehabilitation Court said, "A decision on whether to initiate rehabilitation procedures will be made through hearings over about a month."
Ankang Construction is a comprehensive construction company engaged in construction, civil engineering, real estate sales, and development. It is ranked 138th according to the 2023 construction capability assessment. It has reportedly faced financial difficulties, including assuming debt obligations on a logistics center construction site for which it was responsible and losing land deposits.
After entering into a responsibility completion agreement as the construction company, Ankang Construction faced difficulties recovering 14 billion won in construction costs at the logistics center site in Seonggok-dong, Ansan, Gyeonggi Province, which began construction in August 2022, as the implementing company failed to secure tenants. Additionally, the group subsidiary Ankang Development returned the "Namwonju Station H1" and "Suwon High District C3-1" lands purchased from Korea Land and Housing Corporation (LH) in 2021 and 2022, respectively, suffering a loss of 30 billion won in deposits in May.
For the year 2023, sales amounted to 233.3 billion won, net profit was 1.11 billion won, and the liability ratio was 157.5%.
Earlier in January, Shindongah Construction, ranked 58th among mid-sized construction companies, applied for corporate rehabilitation procedures at the Seoul Rehabilitation Court, leading to the start of rehabilitation procedures. On January 16, Daejeo Construction, the second-largest in Gyeongnam, applied for corporate rehabilitation procedures at the Busan Rehabilitation Court, and on the 24th, SAMBU Construction, ranked 71st, applied for court management.