“A Trustworthy Company Failed to Complete the Job, Seeking Damages and Entering Legal Battle” – ZUM News

(Seoul = News 1) Reporter Park Seung-hee = A lawsuit seeking damages has been filed against a real estate trust company that promised investors that the construction company would complete construction at its own risk.

According to the financial investment industry on the 21st, the creditors of the logistics center construction project in Wonchang-dong (Incheon), consisting of pension funds and securities companies, filed a lawsuit against Shinhan Asset Trust for damages. the company, on the 8th of last month.

The lender sued the trust company for breach of its obligation to complete the responsible completion of the logistics center in relation to the managed land trust. The total amount of damages presented by creditors is 57.5 billion won. The return of the loan principal and interest was requested from the developer, the construction company and the general director of the construction company.

S-1 Construction planned to complete the logistics center by the end of last year, but was unable to complete construction on time due to rapidly rising material and labor costs. The lenders have reportedly asked the trust company, which had promised completion responsibility, to repay the principal and interest on their behalf and complete the construction and sale. However, the industry predicts that the trust company will only cover late interest.

A responsible completion type trust project supports PF loans on behalf of small and medium-sized construction companies with low credit ratings by pledging the trust company to fulfill the lenders responsibly. It has attracted attention as a high-income business, as it has been possible to collect about 2% of the total cost of the project as a commission.

However, due to the downturn in the real estate market, there is a high possibility that trust companies engaged in related businesses will be caught up in lawsuits, as in the case of Shinhan Asset Trust. As the number of small and medium-sized construction companies that failed to withstand the market downturn and went bankrupt increases, some predict that claims for damages may spread to business sites such as offices, knowledge centers and logistics centers. the country where reliable companies have committed to complete the construction.

Shinhan Asset Trust official said. “Despite the completion deadline, we will fulfill our responsibility to complete.”


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