"Geomdan Collapse Accident, Refusal to Accept Business Suspension"… Following GS, Dongbu Also Files 'Administrative Lawsuit'

Dongbu Construction Receives 8-Month Business Suspension as Joint Contractor

GS Construction Faces 8-Month Suspension by Ministry of Land and 1-Month by Seoul City
Seoul City to Discuss Additional 1-Month Suspension for GS Construction in March

GS and Dongbu State "Presented Defense but Contractor Opinions Not Reflected"
Responding with Suspension of Execution Request and Administrative Disposition Cancellation Lawsuit

[Image source=Yonhap News]

Following GS Construction, Dongbu Construction has also decided to take legal action against the Ministry of Land, Infrastructure and Transport's (MOLIT) business suspension order related to the collapse accident of the underground parking lot at an apartment complex in Geomdan, Incheon.

On the 1st, Dongbu Construction issued a statement saying, "Regarding the collapse accident of the underground parking lot at the Geomdan apartment complex in Incheon, our company has received an 8-month business suspension order from MOLIT for civil engineering and architectural construction work and landscaping work." It added, "Although there are various causes for the collapse, we were not involved in the construction, and since this opinion was not reflected, we have decided to proceed with legal action against this administrative sanction by MOLIT."

Dongbu Construction was a joint contractor for the Geomdan New Town apartment project commissioned by the Korea Land and Housing Corporation (LH). In terms of construction cost shares, GS Construction holds 40%, Dongbu Construction 30%, and Daebo Construction 30%. GS Construction carried out the construction alone, but Dongbu Construction and Daebo Construction formed a consortium by contributing costs. Based on this, MOLIT's logic is that the construction companies participating as joint contractors must bear equal responsibility for this accident.

Dongbu Construction stated, "Since receiving the prior notice of disposition from MOLIT and Seoul City last year, we have undergone sufficient explanation procedures as a joint contractor." It continued, "We submitted materials and statements proving that we were not directly responsible for the accident, but these were not accepted." It added, "During the period of legal action, our business activities will not be affected until a final judgment on the cancellation lawsuit of the administrative disposition is made."

On the same day, MOLIT imposed an 8-month business suspension administrative sanction on five companies including GS Construction and Dongbu Construction, the contractors, stating that "due to poor construction, significant damage occurred to major structural parts." The 8-month business suspension is the highest level of administrative sanction that MOLIT can impose for poor construction without fatalities, according to the Framework Act on the Construction Industry and its enforcement decree.

GS Construction also issued a statement that morning, saying, "We plan to respond through a request for suspension of execution and a cancellation lawsuit against the administrative sanction." GS Construction expressed, "As the contractor, we deeply regret the incident and sincerely apologize once again to our customers, shareholders, and the public." However, it explained, "Despite our explanations, the contractor's opinions were not reflected at all in this business suspension order, leaving GS Construction no choice but to take legal action."

The previous day, Seoul City also imposed a one-month business suspension on GS Construction starting in March. This sanction was for poor quality management. Seoul City plans to impose an additional business suspension related to "insincere safety inspections" on GS Construction. After a hearing next month, an additional one-month business suspension will be enforced. If this measure is implemented, GS Construction will face a total of 10 months of business suspension from MOLIT (8 months) and Seoul City (2 months).

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