• - The super-large Pogok Logistics Complex development project in Yongin, Gyeonggi Province, has experienced an Event of Default (EOD).
• - This occurred because negotiations for a sale, conducted while the project financing (PF) loan maturity was extended by three months, ultimately fell through.
• - Significant losses are expected for the Singaporean sovereign wealth fund that invested in junior debt

An Event of Default (EOD) has occurred in the super-large Pogok Logistics Complex development project, currently underway in Yongin, Gyeonggi Province. This is due to the ultimate failure of sale negotiations, despite a three-month extension of the project financing (PF) loan maturity. The lender consortium plans to sell the property to a third party through a public auction. It is anticipated that the sale proceeds will fall short of the loan principal, leading to significant losses for junior creditors.

According to the real estate industry on the 28th, a lender consortium, including Saemaul Geumgo, declared an EOD in mid-May against Dingdong Co., Ltd., which was promoting the creation of a smart logistics complex in the area of 46 Samgye-ri, Pogok-eup, Cheoin-gu, Yongin-si, Gyeonggi Province. This logistics complex was planned to include a large logistics center and support facilities on a site area of 170,740m².

Dingdong Co., Ltd. had PF loans totaling KRW 282.5 billion (approximately USD 209.26 million) including a KRW 150 billion (approximately USD 111.11 million) senior loan from Saemaul Geumgo, that matured in January. The maturity was extended by four months for third-party sale negotiations, but these ultimately failed. Gravity Asset Management had signed a memorandum of understanding (MOU) with foreign investor Blackstone to acquire the KRW 240 billion (approximately USD 177.78 million) senior loan and had been in discussions, but these also fell through. Consequently, the lender consortium declared an EOD in mid-May and initiated debt collection procedures.

The lender consortium will proceed with a public auction but plans to continue additional discussions with several foreign investors who have long shown interest in this logistics complex. As the asset went to auction after sale negotiations failed, the sale proceeds are not expected to cover the PF principal. A representative from the lender consortium stated, "The Pogok Logistics Complex has excellent location conditions, so if the price is adjusted, a buyer can certainly be found," and "Considering the transaction size and liquidity situation, foreign investors are more likely to acquire it than domestic ones".

While Saemaul Geumgo, as a senior lender, will not incur principal and interest losses even if sold through auction, Singapore's GIC (Government of Singapore Investment Corporation), a junior lender with a KRW 45 billion (approximately USD 33.33 million) loan, is expected to face significant losses.

Bujja Co., Ltd., the largest shareholder of Dingdong Co., Ltd., is also developing a logistics complex through Deokpyeong SLC in the area of 45-5 Yangchon-ri, Majang-myeon, Icheon-si, Gyeonggi Province, with a site area of 298,399m$^2$. This Deokpyeong SLC site is provided as collateral for Dingdong Co., Ltd.'s borrowings. Deokpyeong SLC has KRW 256.1 billion (approximately USD 189.70 million) in borrowings from financial institutions for its own logistics complex development (as of end-2024), and the relevant site is provided as collateral. Therefore, its claims have priority over Dingdong Co., Ltd.'s borrowings.

This article was published in Corebeat on May 28, 2025.