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POSCO E&C Resumes Construction After Three Weeks... Is Safety Assured?



28 Out of 103 Sites Nationwide Resume Operations, License Revocation Risks Ease... Full Normalization Still Far Off

POSCO E&C, which had halted construction at 103 sites nationwide, began sequentially resuming work at some locations starting on the 21st. Construction, which had been entirely suspended since the 4th following a series of safety accidents, has partially resumed after about three weeks. The risk of license revocation, which had been a major concern, has also effectively subsided, providing some relief. However, experts note that full normalization is still a long way off.

On the 21st, POSCO E&C announced that it would resume construction at 21 building sites and 7 infrastructure sites directly related to the public, prioritizing locations where safety has been secured. The company explained that it determined whether to resume work at each site through a five-step verification process, including inspections by external experts, confirmation of improvement measures, and approval from the Chief Safety Officer (CSO). POSCO E&C stated, "At large infrastructure sites such as the Incheon Third Link Bridge, unfinished sections can actually increase the risk of deformation and sagging," adding, "We are taking prompt action at sites where public inconvenience is significant or safety risks are increasing."


The situation, which had escalated to the point where President Lee Jaemyung mentioned the possibility of license revocation by questioning whether the incidents amounted to 'murder by implied intent,' has recently calmed down. Minister of Land, Infrastructure and Transport Kim Yoonduk recently stated, "Under current law, license revocation is difficult," stepping back from earlier remarks. The construction industry had expressed concerns that indiscriminate license revocations could shrink the entire sector.


POSCO E&C Resumes Construction After Three Weeks... Is Safety Assured? 원본보기 아이콘


Normalization Steps for Seocho 'Otir Banpo' and Seoripul Complex Development... Numerous Issues Remain, Including Delayed Move-Ins

With construction restarting, the sales schedule for metropolitan area complexes such as 'Otir Banpo (post-sale)' in Seocho-gu, which is approximately 90% complete, is also expected to be rescheduled. Otir Banpo was originally slated for move-in in October, but concerns had grown that the timeline would be pushed back due to the construction halt. The Seoripul (former Army Intelligence Command site) complex development project in Seocho-gu, which had stopped at the initial stage, is also expected to proceed toward normalization. This project has received the largest project financing (PF) in Korea, amounting to about 5.3 trillion won.


Although the immediate crisis has eased, challenges remain. Of the 103 sites, only 28 have resumed operations so far. The remaining 75 sites must still complete procedures such as external expert inspections and CSO approval. POSCO E&C stated, "We plan to re-inspect all sites and conduct additional detailed checks for high-risk processes." In addition, issues such as delayed move-ins and unpaid subcontractor fees that arose during the suspension period also need to be addressed.


The industry believes that, having overcome short-term risks, POSCO E&C must now focus on regaining trust. The brand images of The Sharp and Otir have been damaged, and hurdles remain, including sluggish overseas orders and a deficit of about 91 billion won in the second quarter. An industry official commented, "While the resumption of construction is welcome, the key going forward is to ensure that safety management is not just a formality but becomes an established on-site system."

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