Creditors of Kumho Industrial agreed Thursday on a 690 billion won ($609 million) rescue package for the construction company, industry sources said.

The package deal includes 120 billion won to be provided by creditors, a capital increase of 300 billion won by issuing new stocks and a 270-billion-won debt-to-equity swap next Wednesday.

Kumho Asiana Group chairman Park Sam-koo informed the creditors of his intention to use his private funds for the capital increase of the financially embattled Kumho Industrial.

Park is expected to secure a 14-percent stake by taking part in the capital increase.

Kumho Industrial posted major losses as it sold off Daewoo Engineering and Construction to the Korea Development Bank in 2010 at lowered prices, and paid 78.4 billion won in corporate taxes for dividing up its express bus division last year.

Kumho Industrial reported an erosion of 79.6 percent of its equity capital in a regulatory filing on Tuesday.

By Kim So-hyun (sophie@heraldcorp.com)