An official of the Ministry of Land, Infrastructure and Transport speaks during a press briefing at the Sejong Government Complex, Monday. Yonhap

HDC Hyundai Development Company President & CEO Yu Byoung-gyu

By Lee Kyung-min

HDC Hyundai Development Company is facing the cancellation of its construction license, as the government has recommended the heaviest punishment against the scandal-tainted construction unit of HDC Group over a lethal construction accident, according to the Ministry of Land, Infrastructure and Transport Monday.

Six workers died and another was injured in January at the company's construction site in Gwangju, 330 kilometers south of Seoul, when an apartment building under construction collapsed partially.

The ministry disissed concerns that the penalty of license cancellation could lose its effectiveness if the builder sets up a new company, because along with the license, the order will also erase its years-long track record and branch power.

The ministry made its latest statement two weeks after saying the builder would face a "maximum penalty," defined as either construction license cancellation or suspension of operation for up to a year. Subject to the penalty are those whose premeditation or negligence resulted in poor construction safety practices, leading to public harm.

"We have asked the Seoul Metropolitan Government to seek the strongest possible administrative order for HDC Hyundai Development Company, given the gravity and extent of the case," a land ministry official said during a press briefing.

Relevant ordinances will be revised for the ministry to exercise its authority in punishing those involved in serious construction accidents, which is currently held by municipal governments. Serious accidents are defined as those causing at least three deaths, injuries to 10 or more people or the collapse of a building under construction.

"The ministry will be directly involved in the punishment of builders that cause casualties. We will strengthen construction safety to prevent accidents similar to this in the future," the official added.

Builders will have to pay their subcontractors the expenses needed to make changes in construction methods, a process to be reviewed and approved by an auditor.

This reflects the recent conclusion of an independent 12-member committee that the collapse was due to unauthorized changes in construction and support methods. The committee, with members comprised of construction, architecture and legal experts, said another factor critical to the collapse was the unauthorized removal of a support structure.

The ministry said that it would cancel the construction license immediately of any firms that are found responsible for the deaths of at least five workers or three non-workers nearby.

"Firms will have to brace further for punitive damages in case of deaths caused by poor construction practices," the official said.

The ministry plans to file a complaint with the police to hold small partner firms of the Hyundai affiliate accountable.

Meanwhile, Gwangju Metropolitan Police Agency said it will summon HDC CEO Yu Byoung-gyu for questioning over negligence in personnel management at the construction site.

Twenty people responsible for the collapse have been booked. Of the six arrested, three are from HDC, two are from its partner firms and one is from an outside audit company.

HDC said it would continue efforts to enhance construction safety. "We will seek to prevent on-site accidents," an HDC spokesperson said.