Hanwoo Lee, CEO of Hyundai Construction: "Cannot Say There Is No Responsibility for Gadeokdo New Airport" [2025 Audit]

Gadeokdo New Airport Stalled for Five Months
Intense Scrutiny Over Responsibility for Project Withdrawal

Hanwoo Lee, CEO of Hyundai Construction, faced intense criticism from both ruling and opposition party lawmakers during the National Assembly audit on the 13th. As both sides reproached him over the suspension of the Busan Gadeokdo New Airport construction project and the issue of responsibility, stating in unison that "trust in national projects has been undermined," Lee ultimately said, "I apologize to the public."

Opposition Party: "Trust in National Projects Undermined"

At the National Assembly Land, Infrastructure and Transport Committee audit held that day, CEO Lee responded to a question from Kim Doeup, a lawmaker from the People Power Party, who asked, "Do you not bear any responsibility for the more than one-year delay in the Gadeokdo New Airport construction?" by saying, "I cannot say that I have no responsibility." When Assemblyman Kim pressed further, stating, "It's not enough to say you can't claim no responsibility; Hyundai Construction must take responsibility in some form," Lee answered, "The construction period was calculated to ensure safety and quality, but if there is any responsibility to be taken, I will take it."

Regarding the decision in May to withdraw from the Gadeokdo New Airport project, Lee explained, "Fundamentally, the construction period we proposed was not accepted." However, Assemblyman Kim countered, "The government initially proposed 72 months, then relaxed it to 84 months reflecting industry requests, but after the basic design, Hyundai Construction suddenly insisted on 108 months. In the end, you withdrew on your own accord." Kim also pointed out, "While proceeding with the basic private contract, you were supposed to conduct 58 ground drilling surveys on the offshore runway site, but not a single one was carried out, and six months were wasted. This has completely destroyed trust in national projects."

When Heejeong Kim, another lawmaker from the People Power Party, demanded, "Explain exactly how you will take responsibility," Lee replied, "We have already forfeited all costs incurred during the basic design phase." To this, Kim responded, "That is merely an internal company loss and is separate from the national loss." When asked whether he was willing to apologize to the public, Lee said, "I am truly regretful," and added, "I apologize to the public."

Hanwoo Lee, CEO of Hyundai Construction, attended as a witness at the 2025 National Audit held on the 13th at the National Assembly Land, Infrastructure and Transport Committee. Photo by Seoyoon Choi

Ruling Party: "Legal Responsibility Must Be Examined... Possible Violation of National Contract Law"

Min Hongchul, a lawmaker from the Democratic Party of Korea, also questioned, "Hyundai Construction has maintained its reputation as a leading brand in the Korean construction industry, so how can it so easily abandon the nation's top project?" Referring to Lee's earlier statement that "I cannot say that I have no responsibility," Min criticized it as ambiguous, saying, "It's unclear whether you are admitting responsibility or not. You participated in two rounds of bidding and submitted a letter of intent for a private contract even after the Ministry of Land, Infrastructure and Transport extended the construction period from 72 to 84 months. Wouldn't that mean you completed your internal review before participating?" In response, Lee said, "From the time of bidding, we continuously raised concerns about the insufficient construction period. Experts also mentioned the lack of time during the Ministry's briefing session, so we expected additional time would be granted."

Min asserted, "A relationship of trust had already been established between the state and the Hyundai Construction consortium. Having violated this, you are now liable under the National Contract Law." He further argued, "Instead of only asking the Ministry of Economy and Finance whether punitive measures were possible, the Ministry of Land, Infrastructure and Transport should have asked whether there was liability for breach of contract. If they had, the Ministry of Economy and Finance would likely have responded that there is liability under the National Contract Law." Min continued, "Given participation in two rounds of bidding, selection as the preferred bidder for the private contract, and commencement of basic design, there must have been close communication with the Ministry. This is a case where claims for damages due to breach of trust under civil law or government contract law are possible." He also questioned, "Can a company that abandoned a national project in Korea earn trust in overseas construction bids? The damage to the Hyundai Construction brand's credibility is an even greater loss."

"No Updates for Five Months... When Will the Government Present a Normalization Plan?"

The government's slow response to the delay of the Gadeokdo New Airport project also came under scrutiny. Assemblyman Kim Doeup pressed Minister Kim Yoonduk of the Ministry of Land, Infrastructure and Transport, saying, "It has been five months since Hyundai Construction announced its withdrawal, yet there is still no normalization plan. Both the President and the Minister promised a swift normalization of the project." He emphasized, "The Ministry must present a roadmap as soon as possible so that at least site work can begin next year." In response, Minister Kim stated, "While speeding up the process is important, so is coordinating opinions."

Assemblyman Kim Doeup also pointed out, "The Ministry of Economy and Finance's interpretation that it is difficult to see this as grounds for sanctions under the National Contract Law was due to the Ministry of Land, Infrastructure and Transport failing to submit key materials when requesting a legal interpretation at the time." He added, "In particular, the fact that no offshore ground drilling survey-the core issue of the Gadeokdo New Airport-was ever conducted was omitted. It was only after I brought this to the attention of the Ministry of Economy and Finance that they agreed to re-examine whether this constitutes a violation of the National Contract Law and thus grounds for sanctions."