The local construction industry is bracing for a series of bankruptcies at builders in a much-dreaded chain reaction prompted and exacerbated by widespread project financing (PF) failures over the past few months, industry watchers said Sunday. PF is the financing of long-term infrastructure, industrial projects and public services using limited recourse financing scheme. The debt and equity used to finance the relatively high-risk projects are paid back from the cash flow generated by the project, rather than from collateral put up before the projects. At the center of the concern is the default of a local developer of Legoland in October, which was guaranteed and operated by the municipal government of Gangwon Province. The unexpected failure to refinance the maturing debt of about 205 billion won ($159 million) led to a rapid tightening of borrowing conditions for mid- to small-sized construction firms, already devastated by post-pandemic, inflation-countering sharp key rate hikes.
ASEAN forum to focus on sustainable infrastructure, digital innovation
Posted : 2021-01-15 12:41
By Yi Whan-woo
The ASEAN-Korea Centre will host an online forum, Jan. 19, focusing on the topics of sustainable infrastructure and digital innovation as part of efforts to help the 10 ASEAN member countries recover from the COVID-19 pandemic.
The Seoul-based center is tasked with cooperating with ASEAN.
Titled ASEAN-Korea Partnership for enhancing ASEAN connectivity in the post-COVID-19 era, the eighth ASEAN Connectivity Forum will be livestreamed on YouTube starting at 1:30 p.m.
The two topics are among five strategic areas, including seamless logistics, regulatory excellence and people mobility, as defined in the Master Plan on ASEAN Connectivity (MPAC) 2025.
Business groups protest against industrial accident bill
Envisioned legislation could place top company executive behind bars for major failure in safety management |
South Korea s protestors (Yonhap)
South Korea’s business circles protested Tuesday against the ongoing legislative move to enhance their safety management responsibilities and to hand down sanctions, including the possible imprisonment of a top official.
“We fully agree to the legislative intent to better protect workers’ safety and to prevent industrial accidents,” said the country’s key business groups in a joint rally held at the Korea Federation of SMEs headquarters in Yeouido, western Seoul.
“But it is excessive to lay all the blame upon the management and to hand down quadruple sanctions including criminal punishment, corporate fines, administrative sanctions and punitive damages.”