Suspension of Dongbu Construction's Business Suspension Order Over 'Underground Parking Lot Collapse' in Geomdan New Town

Court Grants Stay of Execution Application Against Seoul City

Regarding the collapse accident of the underground parking lot at an apartment in Geomdan New Town, the effectiveness of the business suspension order imposed by the Seoul Metropolitan Government on Dongbu Construction last year has been temporarily suspended.

A Ministry of Land, Infrastructure and Transport accident investigator is conducting an on-site inspection at a new apartment construction site in Geomdan New Town, Seo-gu, Incheon. [Image source=Yonhap News]

According to the legal community on the 12th, the Administrative Division 3 of the Seoul Administrative Court (Chief Judge Choi Su-jin) approved Dongbu Construction's request for a suspension of execution against the Seoul Metropolitan Government.

In April of last year, an accident occurred at the construction site of the AA13-2 block apartment in Geomdan New Town, where the underground parking lot collapsed. According to the investigation by the Ministry of Land, Infrastructure and Transport, it was confirmed that the rebar necessary to withstand the load of the underground parking lot was missing in 19 out of 32 columns (60%).

Accordingly, the Ministry of Land, Infrastructure and Transport imposed administrative sanctions of an 8-month business suspension on five companies including Dongbu Construction and GS Construction, and the Seoul Metropolitan Government, as the competent authority, also imposed a one-month business suspension (March 1?31) on these construction companies at the request of the Ministry.

However, Dongbu Construction filed lawsuits opposing the sanctions from the Ministry and the Seoul Metropolitan Government, and on the 27th of last month, the court accepted Dongbu Construction's request for suspension of execution against the Ministry. The court explained, "There is a concern that irreparable damage may occur to Dongbu Construction due to the administrative sanctions by the Ministry, and it is recognized that there is an urgent need to suspend the effectiveness of the sanctions to prevent this. It is also difficult to see that suspending the effectiveness of the sanctions would have a significant impact on public welfare, so this decision was made."