Twenty-Four South Korean Builders Seek Debt Support From Banks

By Seyoon Kim and Bomi Lim

Nov. 25 (Bloomberg) -- Twenty-four of South Korea's top 100 construction companies are seeking to restructure their debts under a government-backed program, the Korea Federation of Banks said.

The federation didn't reveal the names of the builders seeking to reschedule debt payments or restructure loans. Initial submissions for the program were received yesterday, it said in an e-mailed statement.

The real-estate industry, which accounts for about 20 percent of the economy, is slumping after the backlog of unsold homes reached the highest in more than a decade and defaults by builders rose for the first time in five years. South Korea said last month it will spend as much as 8 trillion won ($5.3 billion) to buy land and unsold homes.

To contact the reporter on this story: Seyoon Kim in Seoul at Skim7@bloomberg.netBomi Lim in Seoul at blim30@bloomberg.net