Ministry of Employment and Police Conduct Joint Search and Seizure at HDC Hyundai Development Headquarters over 'Gwangju Accident' (Comprehensive)

Reportedly assessing 'prime contractor involvement' such as design changes

Likely excluded from the scope of the 'Serious Accident Punishment Act' effective on the 27th

On the morning of the 19th, officials from the Ministry of Employment and Labor and the police conducted a search and seizure at the headquarters of HDC Hyundai Development Company, the construction company responsible for the new residential-commercial complex in Hwajeong-dong, Seo-gu, Gwangju, where an exterior wall collapse accident occurred. The headquarters is located in Yongsan-gu, Seoul. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] On the 19th, the Ministry of Employment and Labor and the police began a search and seizure operation at the headquarters of HDC Hyundai Development Company, the construction company of the newly built residential-commercial complex apartment in Hwajeong-dong, Seo-gu, Gwangju, where an exterior wall collapse accident occurred.

The Gwangju Employment and Labor Office of the Ministry of Employment and Labor and the Gwangju Metropolitan Police Agency sent investigators to the Hyundai Development Company headquarters in the morning to execute the search warrant. A Ministry of Employment and Labor official said, "It is correct that from 9:30 a.m. today, the Gwangju Regional Labor Office and the police started the search and seizure of Hyundai Development Company together," adding, "It is currently uncertain whether the search will continue for several days."

The Ministry of Employment and Labor and the police are reportedly verifying whether the primary contractor, Hyundai Development Company, was involved in design changes related to the cause of the collapse accident. In addition to the Hyundai Development Company headquarters, a total of five locations including the design office and material suppliers are being searched. This search and seizure operation was conducted four days after the Ministry of Employment and Labor and the police searched the Hyundai Development Company site office and supervision office installed at the Gwangju accident site on the 14th. The site manager of Hyundai Development Company and the site manager of the concrete frame company were booked on charges of professional negligence causing death and violation of the Industrial Safety and Health Act and are under investigation.

Even if it is revealed after the search and seizure that the primary contractor Hyundai Development Company was involved in design changes, the Serious Accident Punishment Act is not expected to be applied, as the accident occurred before the enforcement date of the act on the 27th, and there was one or more deaths and two or more injured requiring treatment for over six months. Under this law, business managers can be sentenced to imprisonment for more than one year in such cases.

However, with high public interest in the 'first punished company' under the Serious Accident Punishment Act, if it is revealed that the primary contractor did not properly establish the site safety and health management system, Hyundai Development Company is expected to suffer managerial damage, and the management risks for other companies will also increase. A Ministry of Employment and Labor official explained, "The core of the Serious Accident Punishment Act is to hold responsible those who violate safety and health measures and cause accidents, and even after the law is enforced, if a serious accident occurs while the primary contractor fails to fulfill safety and health obligations, they will be subject to punishment."

This content was produced with the assistance of AI translation services.