In June 2021, regarding the collapse incident at the redevelopment site in Gwangju's Hakdong, the Seoul City government's decision to impose an 8-month business suspension on HDC Hyundai Development Company was deemed justified by a first-instance court ruling. HDC Hyundai Development Company is the construction contractor for the project.
On the 21st, the Administrative Division 9 of the Seoul Administrative Court (Chief Judge Kim Guk-hyun) ruled against HDC Hyundai Development Company in its lawsuit seeking the cancellation of the business suspension against Seoul City.
Previously, in 2021, at the redevelopment site in Gwangju's Dong-gu Hakdong District 4, a roadside commercial building under demolition collapsed, crushing a city bus. The accident resulted in 9 fatalities and 8 injuries.
Nine months after the accident, in March 2022, Seoul City imposed an 8-month business suspension on HDC Hyundai Development Company. Although the accident occurred in Gwangju, the head office was in Seoul, which is why Seoul City issued the administrative action.
HDC Hyundai Development Company submitted an application to the court for a stay of execution on the business suspension order. Subsequently, in April 2022, the court accepted this application, and the business suspension order has been on hold since then.
HDC Hyundai Development Company claimed that they were not at fault for the accident because they subcontracted the demolition work.
However, the court noted, 'Even if HDC Hyundai Development Company subcontracted, it still has responsibilities as the construction contractor, project owner, and client under the Building Act and the Industrial Safety and Health Act,' stating, 'There was a legal obligation to take necessary precautions to prevent accidents during the demolition of the building.'
The court further stated, 'There were deficiencies in the demolition work, and we can only conclude that HDC Hyundai Development Company had significant negligence,' adding, 'The business suspension imposed by Seoul City is justified.'
A representative of HDC Hyundai Development Company said, 'We plan to appeal the first-instance ruling soon,' and stated, 'We will manage the situation well to ensure that contract parties do not feel anxious about this outcome.'
If the ruling of the plaintiff's defeat is finalized by the Supreme Court, HDC Hyundai Development Company will be banned from all business activities in the country for 8 months.