[Full Text] Chung Mong-gyu "Apologize for Gwangju Collapse Accident... Will Take Responsibility and Resign as Chairman"

Jung Mong-gyu (center), chairman of HDC Group, who has faced public criticism for a series of major collapse accidents in Gwangju, is greeting before announcing his position on his resignation along with a public apology for the collapse accident of the outer wall of Hwajeong I-Park in Seo-gu, Gwangju, at the HDC Hyundai Development Company Yongsan office in Seoul on the 17th. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Kim Hyemin, Kim Dongpyo] Chung Mong-gyu, Chairman of HDC Hyundai Development Company, will step down from his position as chairman, taking responsibility for the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju.

On the 17th, Chairman Chung held a public apology press conference at the headquarters in Yongsan I-Park Mall, Seoul, stating, "I deeply bow my head and sincerely apologize to the victims and families of the Gwangju accident, as well as to the public." He added, "Without the trust of customers and the public, the company's existence has no meaning," and "We will establish and implement all measures to restore trust."

Below is the full text of the press statement.

I deeply bow my head and sincerely apologize to the victims and families of the Gwangju accident, and to the public.

Hyundai Development Company began in 1976 with the development of the Apgujeong-dong Hyundai Apartments and has grown while receiving the trust and love of the public under the I-Park brand.

However, recent two accidents in Gwangju have caused great disappointment to the citizens of Gwangju and the public. In June last year, innocent citizens were killed or injured during the demolition process, and again on the 11th of this month, an accident occurred during the construction process. We are deeply sorry and devastated that not only apartment safety but also trust in the company has fallen to the ground.

It is a very obvious matter, but without the trust of customers and the public, the company's value of existence has no meaning. We will establish and implement all measures to restore the trust of customers and the public once again.

Hyundai Development Company is working together with Gwangju City and related government agencies to safely manage the accident site and carry out rescue operations, and will continue to make every effort to promptly rescue the missing persons.

In addition, we will do our best to compensate the victims' families for damages caused by this accident and to ensure that there is no harm to prospective residents and stakeholders.

The recent two incidents have caused wounds and inconvenience to the citizens of Gwangju. We will consult with Gwangju City to find the best measures for citizens' safety and disaster management.

Taking this accident as an opportunity, Hyundai Development Company will be reborn as a completely new company with a transformative attitude.

The apartments in Hwajeong District, Gwangju, where the accident occurred, will be fully secured so that residents have no safety concerns. We will conduct safety inspections by external agencies at construction sites nationwide and thoroughly verify safety and quality conditions to eliminate concerns and distrust.

We will significantly strengthen safety and quality guarantees so that our customers can live with peace of mind for their lifetime.

Currently, the legal warranty period for structural safety defects such as the framework is 10 years, but for newly occupied houses as well as all buildings constructed by Hyundai Development Company, the warranty period for structural safety defects such as the framework will be greatly extended to 30 years so that residents can live comfortably, and there will be no property damage caused by safety issues.

Hyundai Development Company will be reborn as a national company that prioritizes customer safety and social value, receives the love of the people, and contributes to economic development.

I was appointed chairman of Hyundai Development Company in 1999 from Hyundai Motor Company and have worked for 23 years for the development of the company and to maintain the trust of customers and the public. It pains me deeply that such efforts have been wiped out in an instant due to this accident.

Feeling fully responsible for the two incidents, I will step down from the position of chairman of Hyundai Development Company from this moment. I promise all efforts and support at the group level to manage the aftermath and restore public trust.

Once again, I sincerely apologize to the victims and families of the Gwangju accident and to the public.