Ministry of Land, Infrastructure and Transport Issues Highest-Level Administrative Sanctions to Five Construction Companies
Seoul City Also Imposes One-Month Sanction on GS Construction... Additional Plans Underway
GS Construction is expected to face a total of 10 months of business suspension in connection with the collapse accident at the underground parking lot of the apartment construction site in Geomdan New Town, Incheon, which occurred in April last year.
The site of the apartment construction in Geomdan New Town, Seo-gu, Incheon, where an underground parking lot collapse accident occurred last April. / Photo by Noh Kyung-jo
The Ministry of Land, Infrastructure and Transport announced on the 1st that it has imposed an 8-month business suspension administrative penalty on five construction companies, including GS Construction, Dongbu Construction, Daebo Construction, Sangha Construction, and Asia General Construction, which were contractors at the site. The penalty was imposed due to intentional or gross negligence in poor construction that caused significant damage to major structural parts of the facility. The suspension period is from April 1 to November 30.
The 8-month business suspension is the highest level of administrative penalty that the Ministry of Land, Infrastructure and Transport can impose for poor construction without a fatal accident, according to the Framework Act on the Construction Industry and its enforcement decree. The level of penalty, which was imposed ex officio by former Minister of Land, Infrastructure and Transport Won Hee-ryong under the 'zero tolerance principle,' has been maintained as is. The ministry explained that the decision was made after deliberation by an administrative penalty review committee composed of experts from the legal field, academia, and industry, as well as a hearing procedure for the parties involved.
In particular, GS Construction is expected to have a total business suspension of 10 months, including a 2-month administrative penalty from the Seoul Metropolitan Government. The city took preliminary action on the quality test-related penalty among the two penalties (one month each) requested by the Ministry of Land, Infrastructure and Transport last year for 'insincere quality testing' and 'insincere safety inspections.' This prohibits civil engineering and architectural business activities for the entire month of March. Additional penalties are planned to be imposed after a hearing next month as part of the procedural process.
Construction companies subject to business suspension penalties are prohibited from engaging in business activities related to new projects, such as contract signing and bidding participation, during the suspension period. The Ministry of Land, Infrastructure and Transport's penalty applies not only to GS Construction's civil engineering and architectural business but also to landscaping business. However, it is possible to continue construction work for contracts signed before the penalty or construction projects that have received permits and started construction according to relevant laws.
The accident at the Geomdan apartment construction site occurred when the slab above the first basement floor (approximately 1,104㎡) collapsed, leading to a sequential collapse of the slab above the second basement floor (approximately 185㎡). There were no casualties. At the time, the Construction Accident Investigation Committee cited the absence of shear reinforcement bars, deterioration of concrete quality, and inadequate measures for excessive load above the underground parking lot as the main causes of the accident.
A Ministry of Land, Infrastructure and Transport official said, "Reflecting concerns about safety accidents caused by poor construction, we will continue to hold strict accountability for violations of laws and regulations to ensure construction quality and safety."
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
