HDC to Take Legal Action Following One-Year Business Suspension

The Seoul Metropolitan Government has imposed a one-year business suspension on HDC Hyundai Industrial Development due to the collapse of the Hwajeong I-Park construction site in Gwangju. On May 14, the city announced an eight-month suspension for 'serious damage or loss of life caused by poor construction' and an additional four-month suspension for 'serious accidents under the Industrial Safety and Health Act.' The suspension will take effect from June 9, 2025, to June 8, 2026. A city official stated that the administrative action was taken because HDC's main office is located in Seoul.

The tragic incident occurred on January 11, 2022, when structural elements of the 23rd to 39th floors collapsed, resulting in the deaths of six workers and injuries to one. Following the disaster, 20 individuals, including representatives from HDC and subcontractors, were indicted. In January, a first trial found some site managers guilty, but the executives were acquitted due to a lack of accountability under the Serious Accidents Punishment Act.

In response to the administrative action, HDC announced plans to seek an immediate suspension of the ruling from the court and to file a lawsuit to cancel the administrative decision. The company stated that if the suspension request is granted, their business activities will not be affected until the court's decision on the cancellation lawsuit is made. They also noted that any ongoing projects that had contracts signed prior to the suspension or were legally permitted to commence would continue unaffected.