Last year, HDC Hyundai Development Company, which received a 1-year business suspension from Seoul after the collapse of the I-Park construction site in Gwangju's Hwajeong-dong in 2022, has taken legal action.
According to the construction industry on the 21st, HDC Hyundai Development Company applied for a suspension of execution against the business suspension order from Seoul on the 20th and filed a lawsuit to cancel the business suspension order.
HDC Hyundai Development Company announced on the 21st, "We re-applied for a suspension of execution regarding the administrative business suspension order received from Seoul on March 30, 2022, after the first-instance ruling of the cancellation lawsuit, and we received a ruling in our favor."
Accordingly, the administrative business suspension order will be suspended until 30 days after the ruling date of the appeal in the lawsuit to cancel the business suspension. According to the notice, the Seoul High Court stated that "there is an urgent need to suspend the effect of the order to prevent irreparable damage that could occur to the applicant due to the execution of the order, and it is insufficient to recognize that the suspension of its effect may significantly affect the public welfare."
HDC Hyundai Development Company said, "We applied for a suspension of execution against the business suspension order and filed a lawsuit for cancellation of the business suspension order," and added, "We will continue to make efforts for our employees, partners, customers, and investors, and we will take extra precautions for safety as well."
If the request for a suspension of execution is granted by the court, the effect of the administrative order will be suspended until the main lawsuit is concluded, and during this period, the company will be able to continue its normal business activities.
Previously, the city of Seoul imposed an 8-month business suspension from the 9th of next month to February 8, 2026, on HDC Hyundai Development Company for "significant damage or loss of life caused by intentional or gross negligence due to poor construction" related to the Hwajeong I-Park accident, and a 4-month business suspension from February 9 to June 8 next year due to "industrial safety and health law violations leading to severe accidents."
In January 2022, at the I-Park construction site in Hwajeong-dong, Seo-gu, Gwangju, structures, including floor surfaces, ceilings, and internal and external components from the 39th to the 23rd floors, collapsed, resulting in the deaths of six workers and injuries to one.
As a result of this accident, 20 individuals, including three corporations, such as the main contractor HDC Hyundai Development Company, subcontractors, and supervisory companies, were indicted. The first trial found some related parties, including the site manager, guilty, but ruled that the management could not be held responsible under the Serious Accidents Penalty Act and was acquitted.
Before the Gwangju Hwajeong-dong collapse accident, the Gwangju Hak-dong demolition building collapse accident occurred in 2021, for which HDC Hyundai Development Company received an 8-month business suspension order on March 2022. At that time, HDC Hyundai Development Company responded with a request for a suspension and a lawsuit to cancel the administrative order, thereby not actually suspending its business activities.