The IMF predicts that Korea's general government gross debt will reach 60 percent of its GDP by 2029. Global public debt is projected to approach 100 percent of GDP by the end of the decade.
Korea's national debt last year hit a record high of 1,126.7 trillion won ($826.6 billion), accounting for more than 50 percent of the country's debt-to-gross domestic product.
Taeyoung Engineering & Construction's shares were suspended Wednesday due to its negative net asset balance amid debt restructuring.
But such makeshift measures aimed at helping self-owned businesses stay afloat cannot fundamentally solve their problem.
Homeplus addressed concerns about its liquidity problems, confirming that it has reached a rollover agreement with Meritz Securities.
The Korean government will not use public funds to finance the ailing Taeyoung Engineering and Construction. It urged the company to implement self-rescue plans and gain creditors' trust in order to resolve its liquidity crisis.
The government is considering deleting overdue debt records for small business owners and people in vulnerable classes that had piled up during the Covid-19 pandemic.
Taeyoung E&C has received an injection from parent company TY Holdings in a bid to secure creditor approval for the firm's debt workout program. Creditors will reach a final decision on the proposal Thursday.
The chief of Korea's financial regulator criticized the self-rescue plan proposed by cash-strapped Taeyoung Engineering & Construction (E&C), pushing the mid-sized construction company to come up with a better proposal by this weekend.
Taeyong E&C, Korea's 16th-largest builder, has filed for debt restructuring, raising concerns about the construction industry's debt crisis.
Korea JoongAng Daily Sitemap