Former HDC Hyundai Development Company CEO Chung Mong-gyu Korea Times file
By Lee Kyung-min
HDC Hyundai Development Company could lose its construction license, as the government vows the "maximum penalty" for the scandal-tainted construction unit of HDC Group over the collapse of an apartment building under construction in Gwangju in January, according to the Ministry of Land, Infrastructure and Transport, Monday.
License cancellation would force the firm permanently out of the construction industry, whereas operation suspension, a less severe administrative action, would prohibit it from engaging in bidding on advance orders for a certain period.
The strongest penalty is inevitable, since January's accident came only about six months after another accident that caused 17 casualties at a redevelopment site it supervised in the metropolitan city last June.
Man-made disaster "The accident occurred due to a combination of risk factors under poor overall management," a land ministry official said during a press briefing.
The ministry said the fatal collapse resulted from the firm's poor supervision of safety standards, raw material quality, on-site construction procedures and unauthorized changes mid-construction.
"The level of punishment will be determined by end of this month, after a close review of the cause of the collapse. The strongest penalty will be in store, given the severity of the incident and public concerns."
The ministry will determine whether the June incident should be treated as an aggravating factor, upon the conclusion of the Seoul Metropolitan Government which is reviewing the June case following a hearing process.
"The Seoul Metropolitan Government has yet to finalize an administrative action, a decision we will factor in before making legal recommendations with municipal governments," the official added.
When asked if the firm should be punished for gross negligence, the ministry said it would have to rely on the findings of the ongoing police investigation.
"It is too early to make any concrete remarks at this point. We will be able to provide more clear answers by end of this month, backed by further investigations over the next two weeks."
The ministry's announcement followed a two-month investigation by an independent, 12-member committee comprised of construction, architecture and legal experts.
The committee concluded that the collapse was largely due to unauthorized changes in construction and support methods on the 39th floor of the apartment building. This is why it says HDC will be held liable for failing to have the changes reviewed and approved by an auditor.
Also critical to the collapse was the unauthorized removal of a support structure connecting the 36th floor through the 38th.
A subcontractor of HDC said the removal was ordered by the Hyundai affiliate, but the firm has since equivocated the claim, saying it is only responsible for "not being aware of the removal."
