Gwangju Hwajeong I-Park Prospective Residents Submit Petition to Seoul City for 'Hyunsan Leniency'

Request for Leniency Submitted to Seoul City Ahead of Administrative Sanctions Against Hyundai Development Company
"Concerns Over Delays in Completion and Move-In Due to Consecutive Construction Company Bankruptcies"
Seoul City Conducting Legal Review for Administrative Sanctions

In January 2022, the Gwangju Hwajeong I-Park collapse accident occurred, and as the Seoul Metropolitan Government prepares administrative sanctions, prospective residents of the complex submitted a petition on the 19th requesting leniency to avoid excessive penalties.

On 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 in Yongsan-gu, Seoul, in connection with the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju. Scene from the day. Photo by Moon Honam munonam@

The Gwangju Hwajeong I-Park Prospective Residents' Association visited Seoul City Hall that day to deliver the petition, which was agreed upon by 760 out of 847 prospective households. After the Hwajeong I-Park collapse accident, HDC Hyundai Development Company completed the dismantling of the above-ground residential section by the end of last year and began reconstruction. Currently, construction is underway on the lower floors. The name of the apartment complex under reconstruction will be changed to ‘Gwangju Centennial I-Park’.

The association stated, "To fulfill the promised damage recovery to prospective residents, housing support measures such as interest-free housing support funds have been prepared, and we believe that the stability of the company's management is necessary to responsibly complete these promises and support measures." They added, "We are concerned that the worsening domestic and international economy and the consecutive bankruptcies of construction companies may cause delays in completion and move-in," and explained, "If excessive administrative sanctions are imposed, the repercussions could again affect the move-in schedule and may negatively impact the quality of the apartments."

They particularly argued that while legal punishment is appropriate, the appropriateness of administrative sanctions should be weighed by comparing the public interest intended by the sanction and the private interests infringed upon by the sanction target. The association said, "Since Hyundai Development Company has endured enormous financial losses through damage recovery, complete demolition, and subsequent reconstruction, from our perspective as prospective residents, we believe Hyundai Development Company has already suffered all the ‘de facto disadvantages’ by undergoing sufficient reflection and punishment for preventing recurrence over the past three years."

The city stated that it has begun legal review for administrative sanctions against HDC Hyundai Development Company and plans to swiftly impose sanctions based on the Ministry of Land, Infrastructure and Transport’s recommended sanction severity. Seoul City also decided to prepare for potential lawsuits following the administrative sanctions. In March 2022, the Ministry of Land, Infrastructure and Transport recommended that HDC Hyundai Development Company, which caused two major accidents including the Hwajeong I-Park collapse, be subjected to either cancellation of construction business registration or suspension of business for up to one year.

HDC Hyundai Development Company previously received an eight-month business suspension for poor construction related to the 2021 Hakdong disaster and another eight-month suspension for violating subcontractor management obligations. Subsequently, the company filed injunctions and administrative lawsuits against Seoul City, currently halting the enforcement of these suspensions.

On the 20th of last month, the Gwangju District Court sentenced the site manager of Hyundai Development Company to four years in prison and fined HDC Hyundai Development Company 500 million won in a verdict for charges including professional negligence resulting in death.

A Seoul city official said, "We are reviewing the severity of sanctions under the Framework Act on the Construction Industry and will proceed with sanctions focusing on the court ruling and illegalities."

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