Hyundai Construction fined 50 million won in first trial for illegal contract of Banpo Jugong 1st Complex

Hyundai Construction, which was prosecuted for distributing money and goods to union members to be selected as the construction company for the reconstruction of Banpo Jugong Complex 1, was sentenced to a fine.

Hyundai Construction Gyedong Office. [Photo by Hyundai Construction]

On the 23rd, Judge Hyun Kyung-hoon of the Criminal Division 15 at the Seoul Central District Court sentenced Hyundai Construction, indicted for violating the Urban Maintenance Act, to a fine of 50 million won. Three partner companies indicted on the same charges were each fined 10 million won.

Hyundai Construction is accused of distributing 140 million won in cash to union officials during the process of being selected as the construction company for the reconstruction of Banpo Complex 1 in Gangnam, Seoul, in September 2017.

A total of 95 people, including Hyundai Construction executives and employees of subcontractors who were also prosecuted, were sentenced to fines ranging from 2 million to 20 million won or to suspended prison sentences.

The court found that Hyundai Construction provided illegal money and goods to the reconstruction union to be selected as the constructor. The court pointed out, "When construction companies promote themselves by providing money and entertainment in reconstruction and maintenance projects, it causes conflicts among union members and disrupts market order, resulting in significant social damage."

It added, "Considering the influence construction companies have on reconstruction projects, there is a social need to strictly punish corruption to enhance fairness."

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