Court Suspends Effect of 'HDC Hyunsan Business Suspension'… "Business to Continue for Now"

Entrance of a Hyundai Industrial Development apartment construction site in Seoul [Image source=Yonhap News]

[Asia Economy Reporter Kim Daehyun] A court has ruled to temporarily suspend the business suspension order imposed by Seoul City on HDC Hyundai Development Company (Hyundai Development) in connection with the Gwangju Hakdong collapse accident last June.

On the 14th, the Administrative Division 4 of the Seoul Administrative Court (Presiding Judge Kim Jeongjung) accepted Hyundai Development's application and decided to stay the execution (suspension of effect) of the business suspension order issued by Seoul City. The period is until 30 days after the first trial verdict of the main lawsuit related to Hyundai Development's business suspension order is announced.

The court stated, "There is a concern that irreparable damage may occur to Hyundai Development due to the business suspension order," and "an urgent necessity is recognized to prevent such damage."

Earlier, Seoul City imposed an '8-month business suspension' on Hyundai Development on the 30th of last month, citing 'poor construction.' This was a judgment related to the accident in which nine citizens died during construction in the Gwangju Hakdong Redevelopment Zone 4 last June. Hyundai Development filed a lawsuit to cancel the business suspension the next day and applied for a stay of execution.

On the 13th, Seoul City additionally decided on an 8-month business suspension for Hyundai Development on charges of 'violation of subcontractor management obligations.' The effect of this business suspension will take place in December. Hyundai Development plans to soon file a lawsuit and apply for a stay of execution regarding the additional 8-month business suspension as well.