No Mass Summons Last Year, But This Year Is Different
A Series of Major Accidents, Including the Sejong-Pocheon Bridge Collapse
Hyundai Engineering and POSCO E&C Under Scrutiny
Public Affairs Teams Mobilized for National Assembly Response..
Tension is running high in the construction industry ahead of the first parliamentary audit under the new administration. Due to a series of major accidents this year and the government's "zero tolerance" stance on industrial accidents, the National Assembly is expected to strongly push for summoning the CEOs of major construction companies as witnesses. Companies considered likely candidates are mobilizing their public affairs teams for a full-scale defense, while also accelerating efforts to strengthen on-site safety management.
From the top right clockwise: Hyundai Engineering & Construction, POSCO E&C, Daewoo Engineering & Construction, Hyundai Engineering headquarters. These companies have been involved in major accidents this year and have been or are currently being investigated by the Ministry of Land, Infrastructure and Transport's Construction Accident Investigation Committee. Each company.
According to the National Assembly on September 24, this year's parliamentary audit is tentatively scheduled to begin on October 13. With the schedule set, the list of witnesses for the audit will be finalized soon. The Environment and Labor Committee and the Land, Infrastructure and Transport Committee are the main focus for the construction industry. Given the prevailing sentiment of "holding management directly accountable for repeated accidents," it is widely expected that many CEOs will be included on the list.
During last year's audit, Jeon Joongseon, President of POSCO E&C, and Choi Geumrak, CEO of Taeyoung Construction, were summoned as witnesses. At that time, issues such as the Pyeongtaek logistics center abuse controversy (POSCO E&C), the Jeonju Recycling Town explosion (Taeyoung Construction), and the bankruptcy of a nuclear power plant subcontractor (Samsung C&T) were discussed.
This year, the atmosphere is different compared to last year, when the industry largely avoided a wave of CEO summons. The determination of the government and the ruling party to address industrial accidents is stronger than ever. There have also been several major incidents: the collapse of the Sejong-Pocheon Expressway bridge (February, 4 deaths), ground subsidence in Myeongil-dong, Gangdong-gu, Seoul (March, 1 death), the collapse of the Gwangmyeong Shinansan Line road (April, 1 death), and the collapse of the retaining wall at Gajang Intersection in Osan (July, 1 death). All of these incidents are either under investigation by, or were subject to investigation by, the Ministry of Land, Infrastructure and Transport's Construction Accident Investigation Committee. Major companies such as Hyundai Engineering & Construction, Daewoo Engineering & Construction, Hyundai Engineering, and POSCO E&C have been implicated.
POSCO E&C, which was directly identified by the President as a company responsible for industrial accidents, and Hyundai Engineering, which was found responsible in the committee's investigation, are seen as particularly likely to have their CEOs summoned. Construction companies are busy defending themselves, increasing contact with lawmakers ahead of the audit. An official at a major company said, "Honestly, we just hope that no particular company is singled out," adding, "Our public affairs team is responding with full force." Another official commented, "These days, it's almost like we're marking attendance at the National Assembly every day. Structurally, it's difficult to completely prevent accidents, but with the government's strong stance, there's really nothing to say except, 'We understand, we will reflect.'"
Efforts to build a "defensive shield" to avoid CEO summons are also accelerating. POSCO E&C has appointed its Chief Safety Officer (CSO) as an internal director with voting rights. Daewoo Engineering & Construction has newly assigned two executives under the CSO to oversee both headquarters and field sites. The company has also added dedicated personnel to its regional safety teams to strengthen their control tower function. All of these measures have been introduced in response to the series of safety accidents since the new administration took office.
The sense of tension across the industry is palpable. An industry official stated, "Responding to this year's parliamentary audit, with less than three months left, is our biggest issue," adding, "We are doing everything we can, hoping that if we just get through October safely, we will be able to breathe a little easier."
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