[Q&A·Full Text] Chung Mong-gyu, HDC Chairman: "Complete Demolition and Reconstruction of Hwajeong I'Park"

On the 4th, at a press conference held at the HDC Hyundai Development Company Yongsan headquarters in Seoul to announce additional measures related to the Gwangju Hwajeong-dong I-Park accident response, Chairman Chung Mong-gyu is speaking. Photo by Moon Honam munonam@

HDC Hyundai Development Company (HDC) has decided to demolish all eight buildings of the Hwajeong I-Park apartment complex in Seo-gu, Gwangju, where an exterior wall collapse accident occurred last January, and rebuild them.

Jung Mong-gyu, Chairman of HDC, held an emergency press conference at the company’s Yongsan headquarters in Seoul on the morning of the same day and said, "We will demolish all eight buildings of Hwajeong-dong I-Park as requested by the prospective residents and rebuild the I-Park."

The company expects it will take about 70 months from demolition to completion. Ha Won-ki, CEO of HDC Hyundai Development, said, "The demolition method has not been decided yet, and there are no precedents even domestically. Including complaints from the surrounding community and the approval process, we estimate it will take about 70 months for the actual demolition and reconstruction."

The additional costs to be invested, including construction costs due to demolition and reconstruction and compensation for residents due to delayed move-in, are estimated to be around 370 billion KRW.

◆Q&A (April 4, HDC Hyundai Development Headquarters, Yongsan-gu, Seoul)

Question▷What is the background for deciding to demolish everything and rebuild?

Answer▶(Jung Mong-gyu, Chairman of HDC) Over the past four months since the accident, we have been communicating with prospective residents and continuously discussing compensation. Their biggest concern was safety. Not only the contract holders of the collapsed building (Building 201) but also those of the other buildings had many safety concerns. We thought the only way to alleviate these concerns was to completely demolish and rebuild. We believed this was the fastest way to restore trust, which led to this decision.

▷What about costs and compensation related to the delayed move-in?

▶Last year, 175 billion KRW was accounted for as compensation for Hwajeong I-Park. Due to this accident, we expect an additional cost of about 200 billion KRW. The 200 billion KRW is expected to cover housing support for prospective residents as we negotiate, including demolition and reconstruction costs, so the total amount should be around that figure.

▷How long will the entire demolition and rebuilding take?

▶(Ha Won-ki, CEO of HDC Hyundai Development) The demolition method has not been decided yet, and there are no precedents domestically. Including complaints from the surrounding community and the approval process, we estimate it will take about 70 months for the actual demolition and reconstruction.

▷Won Hee-ryong, nominee for Minister of Land, Infrastructure and Transport, made somewhat strong remarks at the HDC accident site, saying "Companies should go bankrupt and public officials should go to jail." He also mentioned at the National Assembly hearing that there are cases where business suspension can be replaced by fines.

▶(Yoo Byung-gyu, CEO of HDC Hyundai Development) I am not fully aware of what happened in the National Assembly (political circles). As the chairman said, the role of a company is to ensure customer safety and preserve social value to enhance corporate value. We will faithfully fulfill the company’s fundamental mission.

On the 4th, at a press conference held at the HDC Hyundai Development Company Yongsan headquarters in Seoul to announce additional measures related to the Gwangju Hwajeong-dong I-Park accident response, Chairman Chung Mong-gyu is speaking. / Photo by Moon Honam munonam@

◆Full Statement from HDC Hyundai Development (Announced by Jung Mong-gyu, Chairman of HDC Group)

Once again, I bow my head deeply to apologize to all victims and their families of the Gwangju accident, as well as to the people of Korea.

It has been four months since the accident occurred in Hwajeong-dong, Gwangju, but except for compensation to the families of the workers who lost their lives, we have not shown any tangible progress in accident recovery that the public can feel, and I apologize once again for this.

Since the missing persons rescue operation ended in February, we have continued dialogues with prospective residents and nearby merchants for damage compensation, but the anxiety of prospective residents has increased, and the company’s uncertainty has persisted, delaying the recovery of corporate value and trust in the company.

I was deeply saddened to hear that some customers have been losing sleep and worrying since the accident.

Therefore, Hyundai Development will demolish all eight buildings in Hwajeong-dong as requested by the prospective residents and rebuild the I-Park.

We at Hyundai Development believe that if we cannot gain safety and trust from our customers and the public, the company’s existence has no meaning.

The company will continue to prioritize safety and build I-Park, the most important asset for our customers, with trust.

If there is even a slight loss of trust regarding safety in the future, we will keep our promises to customers no matter what damage the company may suffer.

Hyundai Development will fundamentally resolve the anxiety of all customers who love I-Park and the public, and will be reborn as a completely new company to restore market trust.

We will do our utmost to ensure that our I-Park customers can live with peace of mind for life, and furthermore, we promise to become a company that prioritizes customer safety and social value and contributes to national economic development.

Finally, once again, I bow my head deeply to apologize to all those affected by the Gwangju accident and to the people of Korea. Thank you.

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