Seoul City: "HDC Hyundai Development Company Hwajeong Collapse Incident Administrative Measures Will Be Taken Promptly"
by Han Jinjoo
Published 22 Jan.2025 16:54(KST)
Seoul to Issue Administrative Sanctions in the First Half of the Year
City to Actively Respond to Lawsuits Following Sanctions
With the first trial verdict delivered on the collapse accident at Gwangju Hwajeong I-Park constructed by HDC Hyundai Development Company, the Seoul Metropolitan Government, which had postponed administrative sanctions, announced that it will issue the sanctions as swiftly as possible.
A Seoul city official stated on the 22nd, "Since the court has also recognized responsibility for the collapse accident, we plan to promptly issue sanctions based on the Ministry of Land, Infrastructure and Transport's request for disposition severity," adding, "We have already begun reviewing and expect to issue the sanctions within the first half of the year."
The Gwangju District Court on the 20th sentenced the site manager of Hyundai Development Company to four years in prison and imposed a fine of 500 million KRW on HDC Hyundai Development Company in a verdict for those charged with professional negligence resulting in death and other charges.
The city decided to issue sanctions based on the Ministry of Land, Infrastructure and Transport's request for disposition severity, as the court also recognized HDC Hyundai Development Company's responsibility for the collapse accident. The Ministry requested administrative sanctions from Seoul in March 2022, and although the city held two hearings, it postponed the sanctions because the responsibility involving subcontractors and others was not clearly confirmed.
According to Seoul city, the reason for proceeding with administrative sanctions after the first trial verdict was that the severity of responsibility could affect the degree of sanctions, requiring careful judgment. The administrative sanctions will proceed after confirming the facts such as the circumstances of the removal of the pillar props, whether there was any instruction from HDC Hyundai Development Company during the removal process, whether structural review was necessary when installing concrete supports, and the attribution of responsibility.
After issuing the administrative sanctions, Seoul plans to actively respond to anticipated lawsuits from the company by organizing the grounds for the sanctions and the opinions of the hearing chairperson, and through cooperation among internal city departments.
Meanwhile, following the building collapse accident at the Hakdong 4 District demolition site in 2021, Seoul imposed an eight-month business suspension on HDC Hyundai Development Company for poor construction and violation of subcontractor management obligations. HDC Hyundai Development Company filed for a provisional injunction to suspend the enforcement, and the business suspension administrative sanction is currently halted. Subsequently, HDC Hyundai Development Company filed an administrative lawsuit against Seoul, and the first trial regarding the business suspension sanction related to poor construction is ongoing.
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