HDC Hyundai Development Receives Temporary Relief from Business Suspension Following Gwangju Collapse

HDC Hyundai Development has been granted a temporary reprieve from a one-year business suspension imposed by the Seoul city government due to the tragic collapse of the 화정 아이파크 (Hwajeong I-Park) apartment complex in Gwangju in January 2022. The Seoul Administrative Court accepted HDC's request for a stay of execution on May 30, effectively pausing the suspension for 30 days from the date of the initial ruling.

The city had issued the suspension on May 14, citing the incident that resulted in the deaths of six workers and injuries to one, attributing the decision to significant damage and loss of life caused by poor construction practices. The suspension was divided into two parts: an eight-month suspension for severe damage due to substandard construction and a four-month suspension for a major industrial accident under the Industrial Safety and Health Act. The suspension was set to last from June 9, 2025, to June 8, 2026.

In total, 20 individuals, including representatives from HDC Hyundai Development, subcontractors, and supervisory firms, have been indicted in connection with the incident. A first-instance ruling in January found some site managers guilty, but the court ruled that the company's executives could not be held liable under the Serious Accidents Punishment Act, resulting in their acquittal.