South Korean builders must come up with 4.5 trillion won ($4.2 billion) in the first half of this year to cover maturing corporate bonds that can put pressure on the companies already struggling from a sluggish construction market, an industry report said Tuesday.

According to the tally by the Construction Association of Korea (CAK), the total due in the first six months of this year is larger than the 4.1 trillion won in bonds that matured in the second half of 2013.

“Many companies, especially smaller-sized builders, may be hard pressed to generate the money needed to cover their debts,” a CAK official said.

He pointed out that the weak domestic housing market coupled with decreased profitability of construction orders secured overseas will likely put a strain on some companies.

He also said that the first half is critical because bonds that mature from July through December falls off to 1.9 trillion won, which can give more breathing room to companies.

GS E&C, which has to pay back roughly 500 billion won in the cited period, sold off office and commercial buildings last year and even secured cash loans to deal with its repayment issues. It is also considering a move to sell its stakes in the Parnas Hotel Co., which operates the Intercontinental Hotels in Seoul.

SK Engineering and Construction Co. said it plans to issue new bonds to pay back debts that come due in the coming months, but it may switch to a paid-in capital increase option if bond market conditions are not favorable.

Dongbu Corporation and Doosan Engineering and Construction Co., which must cover bond payments totaling 110 billion won and 250 billion won, respectively, said they plan to liquidate stakes in other companies or move to issue redeemable convertible preferred stocks. (Yonhap News)