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[Alpha Biz= Kim Jisun] HDC Hyundai Development Company (HDC) has announced plans to appeal a court ruling that upheld an eight-month business suspension imposed by the Seoul city government in connection with a deadly building collapse in 2021.



On Monday, the Seoul Administrative Court’s 9th Division, presided over by Judge Kim Guk-hyun, ruled against HDC in its lawsuit seeking to overturn the business suspension order. The penalty was issued for violating South Korea’s Framework Act on the Construction Industry following the collapse in Gwangju.



In response to the ruling, an HDC official stated, “The verdict has significant implications for our customers, shareholders, and partners, and therefore, an appeal is unavoidable.” The company emphasized that construction at ongoing sites will continue unaffected by the administrative ruling, and that it remains committed to rebuilding public trust by prioritizing safety.



HDC was the main contractor for the redevelopment project at Hak-dong District 4 in Gwangju, where a building under demolition collapsed on June 9, 2021. The structure fell onto a nearby road, crushing a city bus and killing nine passengers while injuring eight others, resulting in 17 casualties in total.



In March 2022, the Seoul city government imposed an eight-month suspension on HDC’s business license, citing violations of construction safety regulations. HDC filed for an injunction, and in April 2022, the court granted a temporary suspension of the enforcement.



If the court’s ruling is finalized, HDC will be barred from bidding for public or private construction projects and from engaging in new business activities for eight months. However, the company will be allowed to continue work on projects for which contracts were signed or construction had already begun before the ruling.

 

 

 

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