It has been confirmed that DS Networks failed to pay 120 billion won in construction fees to Daewoo E&C and received a provisional seizure order. The assets subject to provisional seizure are trust beneficiary rights for two sites: the Goyang Deogeun Knowledge Industry Complex and an apartment complex in Incheon Songdo.
According to the construction industry on the 23rd, DS Networks was notified by a court this month of a provisional seizure decision over unpaid amounts to Daewoo E&C and interest on arrears claims. The industry believes there are additional construction firms besides Daewoo E&C that have not received payment from DS Networks.
The assets subject to provisional seizure are the trust beneficiary rights for "Goyang Deogeun Knowledge Industry Complex (Deogeun Riverwalk)" and "Songdo Landmark City A9 Block (Songdo Lux Ocean SK View)," which were developed by DS Networks. The time they were served on the trustee, the third-party debtor, was 17th.
A Daewoo E&C official said, "We did not receive construction fees at two business sites that DS Networks was developing," adding, "As a result, we understand that the trust beneficiary rights at two other business sites received a provisional seizure decision."
Deogeun Riverwalk is a Knowledge Industry Complex built by Daewoo E&C, with five basement floors to 21 above-ground floors and a total floor area of 87,620 square meters. It went on sale in 2020. Songdo Lux Ocean SK View is an apartment complex with 1,114 households in Songdo-dong, Yeonsu-gu, Incheon. General sales were conducted in 2022, and move-ins began in March this year.
The business sites where unpaid construction fees arose for Daewoo E&C are "Goyang Hyangdong Knowledge Industry Complex (DMC Citywalk)" and "Pyeongchon Prugio Central Park." At the two sites where it was responsible for construction, Daewoo E&C did not receive approximately 85 billion won and 35 billion won, respectively, in construction costs from DS Networks. As for DMC Citywalk, the pre-sale rate stood at 43.5% as of the end of last year.
Meanwhile, DS Networks is understood to be internally reviewing whether to enter court receivership or a workout. DS Networks ranked No. 1 in sales among developers for three consecutive years from 2020 to 2022 but swung to a loss last year.