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Industry wary of Taeyoung woes despite debt restructuring approval

The local construction industry remains uneasy about the possibility of a chain reaction of insolvencies and defaults by small players, despite Thursday’s approval of engineering and construction firm Taeyoung E&C s debt renegotiation . ....

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Local ratings agencies hit for projections failures, stalling

Three local ratings agencies are coming under heavy criticism for slashing credit ratings for Taeyoung Engineering and Construction, only hours after the troubled builder filed for debt workout, on Dec. 28 of last year. They are Moody s Investors Service-affiliated Korea Investors Service, Korea Ratings and NICE Investors Service. ....

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More companies face credit downgrade risks due to project financing exposure

A growing number of small brokerages and construction firms have suffered either credit ratings downgrades or lower credit outlook prospects over the past month due mostly to elevated risks associated with real estate project financing, market watchers said Monday. ....

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Real estate risks set to hit brokerages in 1st half of next year

Fears are mounting of poor growth for local brokerages, fueled by a combined 12 trillion won ($9.1 billion) in project financing risk exposure certain to wipe out bridge loan-tied credit before next June, according to market watchers, Wednesday. A bridge loan is a high-risk, high-interest loan operated mostly by securities firms and savings banks for the short term. ....

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GS faces stock, ratings fall amid construction scandal

GS Engineering & Construction (GS E&C) is forecast to suffer an additional fall in its stock price and credit ratings, hit hard by its involvement in a series of construction fraud scandals. According to data from the Korea Exchange, GS E&C shares extended a sharp decline of around 26 percent this month alone. ....

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