According to Yonhapinfomax, citing Korea FSS DART System disclosures, GS Engineering & Construction (006360) on November 13 prepaid the remaining debt and accrued interest totaling Won 1.125 trillion (approximately $850 million USD) owed by its 77.65%-owned subsidiary Energy Materials to Korea Development Bank (KDB).

The preemptive debt payment was made to prevent cross-default clauses in GS E&C's foreign currency bonds from being triggered. Energy Materials declared suspension of operations on October 28 due to raw material supply disruptions and low facility utilization rates, causing KDB to issue a notice of default (EOD). GS E&C's foreign currency bonds, issued in March 2025, contain a cross-default provision that permits bond default if a material subsidiary enters default.

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