Former HDC Hyundai Development Company CEO Chung Mong-gyu, right, and his successor Yu Byoung-gyu, listen to questions from reporters during a press conference at the firm's headquarters in Yongsan, Seoul. Yonhap

By Lee Kyung-min

HDC Hyundai Development Company, a scandal-tainted construction affiliate of HDC Group, will spend 200 billion won ($157 million) over the next six years to demolish and reconstruct an apartment complex of eight buildings in Gwangju, including one that partially collapsed in January, its former CEO Chung Mong-gyu said, Wednesday.

The announcement is the latest in a series of safety lapse scandals involving the Hyundai affiliate, amplified by January's collapse that killed six workers and injured one at the company's construction site in Gwangju's Hwajeong-dong. It came only about half a year after a similar accident caused 17 casualties at a redevelopment site it was supervising in Hak-dong in the southern metropolitan city last June.

The plan came as a response to heated criticism from a group of people who demanded total reconstruction after the complete demolition of the apartment buildings, which were made using similar construction methods.

"We will demolish all eight buildings in Hwajeong-dong, to fully allay concerns of the planned occupants of the apartments," Chung said during a press conference at the firm's headquarters in Yongsan, Seoul. "We expect the total loss will amount to 375 billion won. It will take about 70 months to complete."

Chung said he promised for HDC to become a company that will contribute to the growth of the country by placing safety first. "I bow my head deeply and apologize once again to all those who suffered due to the accidents in Gwangju," he added.

The decision was the only way to regain the lost trust of people who had bought units in the complex, according to HDC President & CEO Yu Byoung-gyu.

"Many expressed concerns and anxiety about the safety, apart from compensation needs," Yu said. "We thought the mounting uncertainty will be best dissipated with the complete demolition. It was the hardest decision, but was needed the most."

Yu declined to comment when asked about a comment made by Won Hee-ryong, President-elect Yoon Suk-yeol's land minister nominee, that companies should be "closed for good and public servants should be given prison terms" for accidents of this sort.

"We will do our best to ensure the safety of apartment occupants," he said.

The measure followed the land ministry's recommendation seeking the cancellation of the Hyundai affiliate's construction license in March.

The ministry said the builder should 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.