[Special Stock] Hyundai Development Company and HDC Labs Fall for Second Day Following Ministry of Land Registration Cancellation Request

[Image source=Yonhap News]

[Asia Economy Reporter Myung-hwan Lee] HDC Hyundai Development Company and HDC Labs are experiencing a decline of nearly 7% as of the afternoon on the 29th. This is attributed to the Ministry of Land, Infrastructure and Transport's request to Seoul City for severe disciplinary action against HDC Hyundai Development Company (Hyundai Development), raising the possibility of deregistration.

As of 2:25 PM on the same day, HDC Hyundai Development Company is trading at 15,200 KRW, down 6.17% (1,000 KRW) from the previous trading day. Its affiliate, HDC Labs, is also trading at 10,500 KRW, down 7.08% (800 KRW) from the previous day.

The Ministry of Land stated the day before that considering the cause and scale of damage from the collapse accident at the Hwajeong I-Park new construction site in Seo-gu, Gwangju, in January, the most severe disciplinary action should be applied to the primary contractor, Hyundai Development. They requested Seoul City to impose either deregistration or a one-year business suspension.

On the 29th, Hyundai Development expressed an apology at the shareholders' meeting. At the shareholders' meeting held at the Federation of Korean Industries building in Yeouido, Seoul, CEO Kwon Soon-ho of Hyundai Development bowed his head and said, "With painful reflection and a serious sense of responsibility, we will do our best to manage the aftermath of the accident and make every effort to reform thoroughly to restore the trust of consumers and shareholders."