Seoul City Suspends HDC Hyundai Development Company’s Business for 8 Months over Hakdong Demolition Building Collapse Accident

[Image source=Yonhap News]

'Poor Construction Allegations' such as Construction Different from Demolition Plan and Excessive Water Spraying Instructions

Prohibition of Business Activities Including Bidding Participation During Administrative Suspension Period

[Asia Economy Reporter Kim Min-young] The Seoul Metropolitan Government announced on the 30th that it has imposed an 8-month business suspension administrative sanction on HDC Hyundai Development Company for violating the Framework Act on the Construction Industry in relation to the collapse accident of a demolition building in Hakdong, Gwangju.

Seoul decided on the administrative sanction after reviewing the opinions submitted by Hyundai Development and conducting hearings, following the Ministry of Land, Infrastructure and Transport's request for administrative action regarding the accident last June in the Gwangju Hakdong redevelopment Zone 4, where nine citizens died during demolition.

The Ministry of Land, Infrastructure and Transport requested administrative sanctions last September for poor construction and violation of subcontractor management obligations, and this sanction corresponds to the allegation of 'poor construction.'

Regarding the violation of subcontractor management obligations, sanctions can only be imposed after the relevant autonomous district issues a disposition, and the sanction details will be decided after notification of the disposition is received.

The reasons for the sanction against Hyundai Development are ▲ construction different from the demolition plan, which caused the structural collapse ▲ violation of the obligation to manage and supervise on-site to prevent increased load on the embankment layer due to excessive water spraying.

According to Article 82, Paragraph 2, Subparagraph 5 of the Framework Act on the Construction Industry and Article 80, Paragraph 1 of the Enforcement Decree of the same Act, an 8-month business suspension can be imposed if construction work is negligently or intentionally performed poorly, causing significant damage to major structural parts of a facility or causing casualties to the general public.

Additionally, if the violation caused the death of others, the suspension period can be increased by one month, and if no disciplinary action has been taken within the last three years from the date the violation was detected, a one-month reduction is possible. The city explained that these factors were reflected in the sanction.

Separately, regarding the 'Gwangju Hwajeong-dong Apartment Collapse Accident,' the Ministry of Land, Infrastructure and Transport requested sanctions last March, and the city announced that it will form a dedicated organization and consider strong sanctions, including cancellation of registration, within six months.

During the 8-month administrative suspension, Hyundai Development is prohibited from engaging in business activities as a construction company, including bidding participation. However, construction work already contracted before the sanction or projects that have obtained permits or approvals according to relevant laws may continue.

Han Je-hyun, Director of the Safety General Office, said, "The Gwangju Hakdong demolition collapse accident showed that safety negligence and insensitivity still exist in our society. We will strictly hold accountable for poor construction to prevent such accidents from happening again," and added, "We will actively improve wrong practices at construction sites."

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