Regarding the underground parking lot collapse accident at the Geomdan apartment complex last year, which sparked the so-called 'Sunsal Xi' controversy, the court has also put a halt to the Ministry of Land, Infrastructure and Transport's suspension order against GS Construction. Since the suspension order by the Seoul Metropolitan Government last month has also been stayed, attention is expected to focus on the main lawsuit.
On the 22nd, the Administrative Division 2 of the Seoul Administrative Court (Presiding Judge Ko Eun-seol) granted GS Construction's request for a suspension of execution, which sought to suspend the effect of the Ministry of Land's eight-month business suspension order until 30 days after the first trial date of the main case. At the hearing on the 20th regarding the suspension of execution against the Ministry of Land, GS Construction argued that "there is room for dispute regarding the business suspension order" and appealed that "there is an urgent need for suspension of execution due to the risk of enormous damage caused by losing the opportunity to participate in construction during the suspension period and the downgrade of credit rating."
In relation to the underground parking lot collapse accident at the Geomdan New Town apartment construction site in April last year, the Ministry of Land issued administrative orders on the 1st of last month to suspend business for eight months each to five companies including GS Construction, Dongbu Construction, and Daebo Construction. According to the Ministry of Land's investigation, 19 out of 32 columns (60%) were missing the rebar necessary to withstand the load of the underground parking lot. GS Construction earned the infamous nickname 'Sunsal Xi' as a result.
The Ministry of Land also requested the Seoul Metropolitan Government, the competent authority, to impose a two-month business suspension on these companies. The Seoul Metropolitan Government first imposed a one-month business suspension administrative order on GS Construction in January, holding them responsible for not diligently conducting quality tests.
In response, GS Construction filed suspension of execution requests and main lawsuits against both the Seoul Metropolitan Government and the Ministry of Land. On the 28th of last month, the Seoul Administrative Court granted the suspension of execution request regarding the Seoul Metropolitan Government's order, stating that "there is an urgent need to suspend the effect as the business suspension order may cause irreparable damage to GS Construction."
With the court accepting GS Construction's claims, the business suspension orders imposed on GS Construction by both the Ministry of Land and the Seoul Metropolitan Government will not take effect until the main judgment is rendered.
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