SEOUL (Reuters) - Creditors of South Korean builder Taeyoung Engineering & Construction have agreed to approve a set of debt restructuring plans, primary creditor Korea Development Bank (KDB) said in a statement on Tuesday.

Taeyoung E&C, the construction arm of Taeyoung Group, one of South Korea's largest conglomerates, filed for a debt-restructuring programme in December due to a shortage of liquidity.

The plans would reduce major shareholders' stakes by a ratio of 100 to 1 and raise around 1 trillion won ($724.75 million) through debt for equity swaps and perpetual bonds.

With more than 75% of the company's creditors on board as of late Tuesday, Taeyoung E&C and the creditors' council will go ahead with the plans with expectations that the company will become financially sound to receive orders after 2025, KDB said, welcoming the decision as laying a "cornerstone" to stabilise South Korea's project financing market.

($1 = 1,379.7900 won)

(Reporting by Hyunsu Yim; Editing by Kirsten Donovan)