SK Ecoplant Simultaneously Pursues Two Administrative Lawsuits

SK Ecoplant (formerly SK Engineering & Construction) is currently engaged in two administrative lawsuits: one against the Ministry of Land, Infrastructure and Transport's business suspension order related to the 'Siheung Bridge Collapse,' and another against the Securities and Futures Commission's (SFC) recommendation to dismiss an executive over 'inflated subsidiary sales.'

Both cases are being handled by the Administrative Division 5 of the Seoul Administrative Court, presided over by Chief Judge Lee Jeongwon. At the hearing held on November 13, the court first examined the Ministry of Land, Infrastructure and Transport's six-month business suspension imposed on SK Ecoplant in October 2025, following the Siheung Bridge collapse accident in April 2024, which resulted in one fatality.

SK Ecoplant argued, "The Ministry must first prove SK Ecoplant's negligence in the bridge collapse before issuing a penalty," adding, "Imposing a business suspension before the related investigation is complete causes irreparable harm to the company."

The Ministry of Land, Infrastructure and Transport countered, "The Accident Investigation Committee identified horizontal curvature as one of the causes of the accident," and pointed to SK Ecoplant's inadequate quality control. The Ministry further stated, "All construction companies are watching the outcome of the sanctions regarding the Siheung Bridge collapse, which resulted in not only injuries but also a fatality," emphasizing that the penalty should be maintained to reinforce awareness of safety and quality management.

SK Ecoplant responded, "Horizontal curvature is not listed as a reason for the penalty," and said it would consider submitting relevant materials. Horizontal curvature refers to the phenomenon where a girder bends left or right. A girder is a support structure that holds up the bridge deck.

The second hearing addressed the SFC's September 2025 decision to impose a "recommendation to dismiss the executive in charge of finance and suspend duties for six months." The SFC determined that SK Ecoplant, which was preparing for an initial public offering (IPO) in 2026, violated accounting standards by inflating subsidiary sales, leading to these measures.

SK Ecoplant claimed, "We corrected the violations by amending and disclosing our financial statements during the Financial Supervisory Service's audit," and argued, "Even if the enforcement is suspended, there will be no impact on the public interest." The company also asserted, "It is impossible to handle highly complex financial issues without the responsible executive," stressing the necessity of suspending the enforcement.

The SFC countered, "If the executive who violated accounting standards continues to perform their duties, it will cause confusion among investors and other stakeholders," and added, "If the executive completes their term and is transferred, the effectiveness of the penalty will be undermined." The SFC further noted, "Given SK Ecoplant's size, the financial executive does not appear to be irreplaceable." As of June 2025, SK Ecoplant's consolidated assets exceeded 16 trillion won.

Lee Sangwoo, Legal Times Reporter

※This article is based on content supplied by Law Times.

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