Dongwoo Construction, ranked 174th in construction capability assessment, has filed for court receivership. The company had grown for more than 30 years mainly through public works contracts as a strong small and medium-sized builder, but it appears to have been affected by the aftermath of unsold units at private project financing (PF) business sites.
According to Dongwoo Construction on the 10th, it filed for court receivership with the Seoul Bankruptcy Court on the 5th and received notice from the court of a preservation order and a comprehensive stay order on the afternoon of the 8th.
Based in the Gyeonggi region, Dongwoo Construction recorded a construction capability assessment amount of 135.5 billion won this year, ranking 174th nationwide in the construction capability assessment.
Recently, as part of business diversification, it launched its own brand "ELCORE" and entered private development projects, but unsold units piled up at officetel sites in Daegu and Gimpo, pushing joint-guarantee debt and uncollectible receivables to 67 billion won. The company is said to have opted for court receivership on the judgment that even the 20-plus public works currently proceeding normally could be paralyzed.