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Massive Logistics Project Collapses: GIC Hit After Blackstone Deal Falls Through
Court-Led Auction Underway in June—Market Reels from Aftershock
One of Korea’s Largest Logistics Projects Stalls
The Pogok Logistics Complex in Yongin, Gyeonggi Province, once touted as one of the largest logistics development projects in Korea, has entered an Event of Default (EOD).
Developed by Dingdong Co., Ltd., the project aimed to build a large-scale smart logistics hub across 170,740㎡ of land. The developer had aggressively leveraged debt—borrowing KRW 282.5 billion, including KRW 150 billion in senior debt from the Korea Federation of Credit Cooperatives (KFCC)—to fund the construction.
Loan Maturity Extended, But Sale Collapses
The project financing loan matured in January 2025. Amid project delays and an absence of committed buyers, the lender group opted for a three-month maturity extension in hopes of securing a workout through a third-party sale.
During this time, Gravity Asset Management signed a memorandum of understanding (MOU) with the seller, Dingdong Co., Ltd., to acquire the asset in a deal backed by Blackstone. Despite initial interest, negotiations encountered difficulties and ultimately failed to reach a final agreement. Once the MOU expired, the deal was officially terminated.
With no other viable exit, KFCC and its lender consortium declared an EOD in mid-May and began asset recovery procedures. The consortium will now move forward with a court-led public auction while maintaining informal discussions with other interested logistics-focused investors. “The location remains attractive, and at the right price, a buyer will emerge,” said one lender.
GIC Faces Major Write-Down
While senior lenders such as KFCC are expected to recover their principal and interest, Singapore’s sovereign wealth fund GIC, which extended KRW 45 billion in junior debt, is expected to incur heavy losses.
A market insider familiar with the deal commented that once the public auction begins, losses on the total loan amount could reach 20–30%, making it virtually impossible for subordinated lenders like GIC to avoid substantial write-downs.
Collateral Web: Icheon Ties Add Complexity
Dingdong’s parent company, Bujja Co., Ltd., is also promoting another logistics development in Icheon (Deokpyeong SLC). The Icheon site has been pledged as collateral for Dingdong’s obligations.
However, Deokpyeong SLC itself carries KRW 256.1 billion in project loans, which take precedence over Dingdong’s debt. This layered collateral structure adds complexity and diminishes recovery prospects for Dingdong’s creditors.
This article was originally published by Corebeat on May 28, 2025.