In connection with the collapse of the redevelopment demolition site in Hak-dong, Dong-gu, Gwangju in June of last year, it was confirmed that the Gwangju Dong-gu Office had requested the Seoul Metropolitan Government, the registration authority, to issue an 8-month suspension of business for the original building, HDC Hyundai Industrial Development.
In this regard, as the city of Seoul recently officially started disciplinary procedures, such as requesting the submission of opinions along with advance notice of administrative measures to Hyundai Development Company, there is a high possibility that the first administrative measures will be taken as early as next month.
According to the Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government on the 20th, the Seoul Metropolitan Government notified Hyundai Development Company of the 8-month suspension of business on the 12th, the day after the collapse of the outer wall of Hwajeong I Park in Seo-gu, in relation to the Hakdong Disaster in Gwangju. Submission requested.
In June of last year, at the redevelopment site of Hakdong District 4 in Gwangju, a building that was being demolished collapsed on the roadside, resulting in 17 casualties, including nine bus passengers passing the accident and eight injured.
As a result of this accident, a trial is currently underway against the company in charge of the on-site construction and the person in charge, and the Dong-gu Office applied to the original building, Hyundai Industrial Development, on the charge of 'incorrect construction due to intentional negligence' under the Framework Act on the Construction Industry and suspended business for 8 months. This is a request from the Seoul Metropolitan Government to drop it off.
Currently, the Ministry of Land, Infrastructure and Transport has the authority to investigate inappropriate construction, but the authority to take administrative measures against the company is delegated to the local government, which is the registration authority.
The 8-month business suspension requested by the Dong-gu Office in Gwangju is based on Article 82, Paragraph 2, Item 5 of the Construction Act and the Enforcement Decree.
According to the Construction Act and the Enforcement Decree, business suspension may be imposed for up to one year in 'in the event of the death of five or more construction work participants due to serious damage to major structural parts of a facility due to poor construction intentionally or grossly negligence'.
However, the Hakdong demolition accident killed a bus passenger, not a construction worker, and this is a case of 'inflicting casualties on the public'.
In this regard, the city of Seoul plans to finalize the level of disposal as soon as next month after going through a hearing process as soon as Hyundai Industrial Development's opinion is received.
The Seoul Metropolitan Government is currently struggling with the level of disciplinary action against Hyundai Industrial Development.
First of all, in the case of the Gwangju redevelopment accident, the demolition subcontractor directly paid for it, and after receiving the first subcontract from Hyundai Development Company, no administrative action has been taken against the Hansol company that illegally subcontracted to the Gwangju local company (Baeksol company). .
Yeongdeungpo-gu, the registration authority of Hansol Enterprises, has withheld administrative measures against Hansol Enterprises, saying that it will determine the level based on the results of the ongoing trial.
The Seoul Metropolitan Government explains that interpretation and judgment on various issues are necessary even for 'poor construction', which is the standard for punishment.
There is a controversy over whether 'demolition' is considered 'construction', and since the demolition subcontractor of Hyundai Development Company has again illegally subcontracted, it is difficult to investigate the poor management of Hyundai Development Company, the original building, until the trial result comes out. that it's not easy.
For this reason, the level of punishment may vary depending on the clarification of Hyundai Industrial Development and the results of legal and legal review.
A Seoul official said, "We will receive opinions from Hyundai Development Company, go through hearings, etc., and determine the level of disciplinary action, including the period of business suspension."
If Hyundai Development Company is suspended from business due to the Hakdong redevelopment demolition accident, participation in public works by the government as well as contracting for private projects is completely prohibited for that period.
In addition, the Hwajeong I-Park exterior wall collapse accident, unlike the school-dong disaster, is more likely to result in severe punishment than the school-school accident because Hyundai Development Company's negligence in construction and management is more clearly responsible.
If a business suspension of eight months, the highest punishment, is imposed due to the school-dong disaster, and a one-year suspension due to the collapse of the outer wall of Hwajeong I-Park, Hyundai Development Company will suspend new business orders for one year and eight months.
In particular, in relation to the collapse of Hwajeong I-Park, there is even talk of 'cancellation of registration', which is the highest punishment under the Construction Act.
Minister of Land, Infrastructure and Transport Noh Hyung-wook met with reporters on the 17th and expressed the opinion that registration cancellation is possible, saying, "I think the strongest penalty (punishment) stipulated by the law should be given" about the level of disciplinary action against Hyundai Industrial Development.
An official from the construction industry said, "New orders will be stopped immediately after a year of business suspension, and large construction companies will find it difficult to sustain due to the damage to corporate credibility. This is a severe punishment equivalent to cancellation of registration,” he said.
Currently, the construction industry is a report system, not an authorization system, so even if Hyundai Development Company loses its registration, it is possible to re-register the construction business under a new name.
However, it is not easy right now due to aggravation of public opinion and a drop in brand trust, and even if new registrations are made, all previous construction performance will be lost, and a contraction in business is inevitable.
The disciplinary action against Hyeonsan is expected to severely damage the HDC group as a whole.
HDC Group's total sales last year were 5.2 trillion won, of which Hyundai Industrial Development's sales were 3.65 trillion won, accounting for 70% of the total.
However, if Hyundai Development Company protests against the level of punishment after the disciplinary action is finalized and goes to a lawsuit, the execution of administrative measures may be prolonged.
The Ministry of Land, Infrastructure and Transport and the Seoul Metropolitan Government are of the view that intensive punishment is necessary for the preceding accidents, even as an alarm for repeated safety accidents.
However, it is reported that they are concerned about the risk of damage to prospective tenants in apartments under construction and bankruptcy of business partners if Hyundai Development, one of the top 10 construction companies in Korea, collapses.