Daegu holds emergency meeting after mid-sized builder Taewang E&C files for court receivership

The Daegu city government convened an emergency inter-agency meeting Tuesday afternoon at the Sangyeok office complex to discuss the fallout from Taewang E&C's filing for court receivership, a corporate rehabilitation procedure.

Chaired by Daegu Mayor Choo Kyung-ho, the meeting brought together representatives from iM Bank, the Financial Supervisory Service and the Korea Credit Guarantee Fund, as well as officials from the Korea Federation of Construction Contractors, the Korea Specialty Contractors Association and the Korea Mechanical Construction Contractors Association.

Participants shared information on the status of Taewang E&C's receivership filing and its impact on the local construction industry, and discussed a range of measures to support liquidity in the sector and ensure ongoing projects proceed without disruption.

The city said it would monitor the court's receivership proceedings in real time, activate a direct subcontractor payment system at public construction sites, and take administrative steps — including designating replacement contractors — if necessary.

Financial institutions agreed to review support measures to assist subcontractors facing temporary liquidity crises as a result of the receivership.

The Financial Supervisory Service and local construction associations said they would track funding difficulties and damage at affected sites in real time.

Taewang E&C also pledged to carry out self-rescue measures — including asset sales and restructuring — without delay, to minimize harm to subcontractors and limit the broader impact on the regional economy.

"My heart is very heavy to hear of Taewang E&C's receivership filing at a time when the local construction industry is already struggling under a prolonged real estate slump," Mayor Choo said. "Above all else, it is critical that we activate an emergency response framework to prevent the crisis from spreading."