셀스마트 판다
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4 months ago
Korean Construction Industry Faces Domino Effect of Bankruptcies (Mar 14, 2025)
The Korean construction sector is facing renewed crisis concerns as mid-sized construction firms increasingly file for court receivership amid deteriorating financial conditions. With the fiscal year-end and audit report disclosures approaching, panic over insolvencies is spreading. In Q1 2025 alone, seven construction firms have filed for rehabilitation, signaling severe financial strain across the industry.Between January and February, 109 general construction firms shut down, marking a significant increase from last year. Including specialized construction firms, the total number of business closures reached 634. The sharp rise in unsold housing units is exacerbating liquidity shortages, putting additional pressure on developers.Even major construction firms are offloading prime assets and subsidiaries to secure liquidity. Lotte Construction is attempting to sell its headquarters property to raise KRW 1 trillion, while SK Ecoplant and GS Engineering & Construction are also considering divesting key subsidiaries. However, aggressive contract bidding during the low-interest era has now become a liability, raising concerns over further bankruptcies across the sector.[Compliance Note]All posts by Sellsmart are for informational purposes only. Final investment decisions should be made with careful judgment and at the investor’s own risk.The content of this post may be inaccurate, and any profits or losses resulting from trades are solely the responsibility of the investor.Core16 may hold positions in the stocks mentioned in this post and may buy or sell them at any time.
