HDC Hyundai Development Company Loses Lawsuit to Overturn Gwangju Hakdong Business Suspension, Plans to Appeal (Comprehensive)

Lost Lawsuit Against Seoul Over Eight-Month Business Suspension
Business Suspension to Take Effect 30 Days After Ruling
HDC Hyundai Development Company: "Will File for Injunction and Appeal"

HDC Hyundai Development Company, which had received an eight-month business suspension in connection with the collapse accident at the Hakdong redevelopment site in Gwangju, announced its intention to appeal after losing its administrative lawsuit against the Seoul Metropolitan Government seeking to overturn the disciplinary action.

On the 19th, officials from the Ministry of Employment and Labor and the police conducted a search and seizure at the headquarters of HDC Hyundai Development Company in Yongsan-gu, Seoul, in connection with the collapse accident at Hwajeong I-Park in Seo-gu, Gwangju. Scene from the site on that day. Photo by Moon Honam munonam@

On the 21st, the Administrative Division 9 of the Seoul Administrative Court, presided over by Chief Judge Kim Gukhyeon, ruled against HDC Hyundai Development Company in its lawsuit against the Seoul Metropolitan Government to cancel the business suspension order. If the ruling is upheld by a higher court, HDC Hyundai Development Company will be unable to conduct business activities for eight months.

HDC Hyundai Development Company plans to appeal the first-instance ruling. The company stated, "Because this ruling affects all stakeholders, including customers, shareholders, and partners, an appeal is inevitable."

If 30 days pass after this ruling, the business suspension order will take effect, and HDC Hyundai Development Company also plans to file for an injunction to suspend the execution of the order. The company added, "We will prioritize safety at all sites and work to restore trust."

Previously, in June 2021, a building collapsed during construction in Zone 4 of the Hakdong redevelopment area in Gwangju, resulting in the deaths of nine citizens. In response, the Seoul Metropolitan Government issued two separate eight-month business suspension orders to HDC Hyundai Development Company in March 2022, citing poor construction and failure to fulfill subcontractor management obligations.

Subsequently, in April 2022, the administrative action was postponed for three years after HDC Hyundai Development Company's request for a stay of execution was granted.

Separately, the eight-month business suspension imposed by the Seoul Metropolitan Government for violation of subcontractor management obligations was changed to a fine of 406 million won.

Meanwhile, the Seoul Metropolitan Government is also preparing administrative action in connection with the collapse accident at Hwajeong I-Park in Gwangju. The Ministry of Land, Infrastructure and Transport requested administrative action from the Seoul Metropolitan Government in March 2022, and the city held two hearings. However, as responsibility among subcontractors and other parties has not been clearly established, the administrative action has been postponed.