Gwangju Rehabilitation Court approves Youngmu Togen's restructuring plan

A court has approved the corporate rehabilitation plan of Youngmu Togen, a mid-sized construction company based in South Jeolla Province and Gwangju.

The Gwangju Rehabilitation Court's First Bankruptcy Division approved the restructuring plan for Youngmu Togen Co. on Monday.

The court said the rehabilitation plan submitted by Youngmu Togen was passed at a creditors' meeting on Thursday and met the legal requirements under the Debtor Rehabilitation and Bankruptcy Act.

Youngmu Togen ranked 111th in the Ministry of Land, Infrastructure and Transport's construction capability assessment as of 2024 and has developed apartment projects across the country under its own brand, Youngmu Yedaeum.

The company had been struggling with a liquidity crisis stemming from rising raw material prices, higher labor costs and a buildup of unsold units.