[Alpha Biz= Reporter Paul Lee] Following Shinsegae Group, Dongwon Group has also stepped in to provide hundreds of billions of won in funding to its struggling construction subsidiary amid liquidity crisis.
On the 14th, Dongwon Industries and Dongwon Homefood announced that they had provided collateral for a total debt of 300 billion won borrowed by their affiliate, Dongwon Construction Industry, from Shinhan Bank. The collateral provided by Dongwon Industries and Dongwon Homefood is a warehouse facility located in Siheung City, Gyeonggi Province, valued at 360 billion won. This collateral amount corresponds to 120% of the loan agreement amount.
Earlier, Dongwon Construction Industry had disclosed on the 7th that it had pledged two buildings owned by Dongwon Homefood as joint collateral while agreeing to a corporate general-purpose loan limit of 6 billion won.
Established through a spin-off from Dongwon Systems in 2013, Dongwon Construction Industry is wholly owned by Dongwon Industries.
Alphabiz Reporter Kim SangJin(hoondork1977@alphabiz.co.kr)
