Struggling Korean builders face high funding costs

[HONG KONG] South Korea's troubled construction sector is under pressure to find alternative sources of funding after a flight to safety in the country's domestic debt market.

Its builders have had to deal with lower real estate prices, a weak economy and slow momentum on overseas projects, and many are in desperate need of funding.

The weaker construction companies have been locked out of Korea's domestic bond markets since the likes of Samsung Engineering and Daewoo Construction reported losses last year.