Last June's Hakdong Disaster and Other 'Safety' Reinforcement Promises
Ranked Lowest Among Top 10 Construction Companies in Safety Evaluation
Another Major Accident with Exterior Wall Collapse Just 7 Months Later
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 a public apology and his position regarding his future at the Yongsan office 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@
With the formal enforcement of the Serious Accident Punishment Act scheduled for the 27th, not only construction companies but also the government are emphasizing 'safety first.' However, on-site accidents continue to occur, raising concerns that outdated desk management and desk administration practices persist.
On the 11th, at the Hwajeong I-Park new construction site in Hwajeong-dong, Seo-gu, Gwangju, part of the 23rd to 38th floors of a 39-story building collapsed, injuring one person and leaving six workers involved in window installation, plastering, and fire-fighting equipment missing. One of the missing persons was recovered deceased from the basement level 1, and search efforts are ongoing to find the remaining five.
Four days before this accident, HDC Group held a senior executive workshop at a resort in Gangwon Province.
HDC Hyundai Development Company (hereafter referred to as Hyundai Development) stated, "We held the first New Year's meeting of HDC Group's affiliate presidents at Oak Valley in Wonju, Gangwon Province, discussing ways to foster new businesses and create synergy among affiliates as a comprehensive financial real estate group."
The meeting was attended by Chairman Chung Mong-gyu, Hyundai Development CEO Yoo Byung-kyu, HDC Holding Company CEO Jung Kyung-gu, and representatives from all affiliates, sharing each company's current issues. Amid the increasing importance of safety management with the enforcement of the Serious Accident Punishment Act, responses to this were also reportedly discussed as a key agenda.
Earlier, in his New Year's address, CEO Yoo emphasized, "Safety has always been and will continue to be our core management goal that cannot be overemphasized."
However, just five days after the workshop, on the 12th, CEO Yoo had to bow his head and apologize at the site of the Hwajeong I-Park collapse in Gwangju, saying, "I deeply apologize to the missing persons, their families, and the citizens of Gwangju who have suffered damage."
On the 19th, officials from the Ministry of Employment and Labor and the police moved seized items after completing a search of the HDC Hyundai Development Company headquarters in Yongsan-gu, Seoul, in connection with the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju. Photo by Moon Honam munonam@
Additionally, Hyundai Development was found to have received the lowest safety rating among the top 10 construction companies in a government safety evaluation.
According to the Ministry of Land, Infrastructure and Transport's '2021 Safety Management Level Evaluation for Participants in Public Construction Projects,' Hyundai Development received a 'very poor' rating, indicating a score below 40 out of 100 in safety evaluation.
The 'very poor' rating was given to 28 out of 135 companies, placing them in the bottom approximately 20%. Among the top 10 construction companies, Lotte Construction received a 'poor' rating, SK Ecoplant, Daewoo Engineering & Construction, and POSCO Construction received 'average,' while GS Construction and DL E&C received 'excellent' ratings.
This evaluation was conducted on 135 companies participating in public construction projects with a total construction cost exceeding 20 billion KRW. It assessed safety inspection activities according to safety management plans, safety education, disaster prevention activities, and the operation of safety systems.
Moreover, Hyundai Development was also responsible for the Gwangju Hakdong disaster last year in June, which resulted in 17 casualties. After the Hakdong disaster, HDC Group Chairman Chung Mong-gyu promised to "establish company-wide measures to prevent recurrence" and pledged compliance with construction site safety, but a major disaster recurred just seven months later.
This has led to criticism that the safety management system has not improved at all and that the emphasis on safety is merely desk management disconnected from the actual sites.
The Korean Confederation of Trade Unions Construction Union held a "Rally of Construction Workers' Resolution to Strengthen Punishment for Murderous Companies! Strengthen the Serious Accident Punishment Act! Urge the Enactment of the Construction Safety Special Act!" on the 20th in front of the Cheongwadae Sarangchae in Jongno-gu, Seoul. / Photo by Moon Honam munonam@
The government is taking a tougher stance than ever on the series of construction site disasters.
Minister of Land, Infrastructure and Transport Noh Hyung-wook reaffirmed a hardline approach regarding sanctions against Hyundai Development, stating, "I believe we must respond with zero tolerance."
In an interview with the media the previous day, Minister Noh said, "The cause of the accident appears to be complex, and once the accident investigation and police investigation proceed, the cause will be clearly revealed. However, for repeated accidents, I think the strongest sanctions under current law should be applied."
He added, "Under current law, if construction is carried out negligently or intentionally, causing damage to major structures and posing harm to the public, the construction business registration can be canceled or suspended for one year."
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