HDC Chung Mong-gyu "Deeply Responsible for Gwangju Collapse Accident" Resigns as Chairman (Update)

Gwangju Citizens Apologize to the Public and Resign as Chairman
"Full Effort in Missing Person Rescue... Expanding Safety Quality Assurance to 30 Years"

Jung Mong-gyu, chairman of HDC Group, who has faced public criticism for a series of major collapse accidents in Gwangju, is making a public apology and announcing his position regarding his future at the Yongsan headquarters of HDC Hyundai Development Company in Seoul on the 17th, concerning the collapse accident of the outer wall of Hwajeong I-Park in Seo-gu, Gwangju. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Kim Hyemin and Kim Dongpyo] Chung Mong-gyu, Chairman of HDC Hyundai Development Company, has resigned from his position as chairman, taking responsibility for the consecutive fatal accidents at construction sites in the Gwangju area.

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 of the Gwangju accidents, their families, and the public," and announced his intention to resign.

He said, "Due to two recent accidents in Gwangju, I have caused great disappointment to the citizens of Gwangju and the public. I am deeply sorry and overwhelmed with grief as not only apartment safety but also trust in the company has fallen to the ground."

Chairman Chung emphasized, "Without the trust of customers and the public, the company's existence has no meaning," and added, "We will establish and implement all measures to restore trust."

He first promised compensation, saying, "We will focus all efforts on promptly rescuing the missing persons," and "We will do our best to compensate the victims' families and ensure that prospective residents and stakeholders do not suffer any damage due to this accident."

Regarding safety concerns at the Gwangju Hwajeong I'Park, where the accident occurred, he stated, "We will take all necessary measures so that residents have no worries." He also added, "We will conduct safety inspections by external agencies at construction sites nationwide and thoroughly check safety and quality conditions."

The legal 10-year warranty period for structural defects will be extended to 30 years. Chairman Chung said, "We will extend the warranty period for structural safety defects, including the framework, not only for newly occupied homes but for all buildings constructed by Hyundai Development Company, so residents can live comfortably," and "We will ensure that there is no property damage caused by safety issues."

He reiterated, "I deeply feel responsible for the two incidents and will step down from the chairman position from this time onward," and "The group promises all efforts and support to manage the aftermath of the accidents and restore public trust."