Daewoo E&C Decides on 89 Billion Won Debt Guarantee for Samik Park Apartment Reconstruction PF Loan

Daewoo E&C decided to provide a debt guarantee of 89 billion won including joint liability and fund supplementation for a PF loan of 79 billion won to the Samik Park Apartment Reconstruction Project Association.
This guarantee equals 2.56% of equity of 3.4746 trillion won. Total outstanding debt guarantees are 13.4928 trillion won with 7.309 trillion won used out of the 12.809 trillion won PF guarantee limit.
The creditors are Saemaul Geumgo and Shinhan Capital, stable financial institutions. The guarantee period is 57 months from the initial drawdown.
[AI Summary]This debt guarantee is a routine support for PF projects and does not directly dilute shareholder value. However, the large contingent liability burden continues to accumulate additional financial risk. With total guarantees reaching about 3.9 times equity, any default in PF projects could negatively impact financial soundness.