[Alpha Biz= Paul Lee] Seoul, June 30, 2025 – NICE Investors Service has downgraded the senior unsecured bond rating of Dongwon Construction Industry, a subsidiary of Dongwon Group, from ‘BBB (Negative)’ to ‘BBB- (Stable)’.
The downgrade reflects deteriorating profitability in the construction sector due to rising raw material costs, as well as increased working capital pressure stemming from delayed receivables at project sites such as the Geo&Es Yongin Logistics Center.
NICE highlighted that Dongwon Construction’s reliance on debt financing to cover funding shortfalls since 2021 has significantly weakened its financial stability. Total borrowings surged from KRW 4.9 billion in 2021 to KRW 117.6 billion by the end of 2024.
The company’s debt-to-equity ratio reached 360.9%, with a net debt-to-capital ratio of 36.5%, underscoring reduced capital buffer and persistent financial strain.
Dongwon Construction, ranked among Korea’s top 60 builders, was established in 2013 as a spin-off from Dongwon Systems.
Alphabiz Reporter Paul Lee(hoondork1977@alphabiz.co.kr)
