On December 16, Daewoo Engineering & Construction announced that it had received a two-month business suspension for its civil engineering and architectural construction business as an administrative sanction imposed by the Seoul Metropolitan Government.
In Geumcheon-gu, Seoul, Daewoo Engineering & Construction, the project developer, and the building owner were reported to the police in connection with ground subsidence caused by the collapse of a retaining wall at the Gasan-dong officetel construction site in 2018. The reason cited was that, either intentionally or through negligence, they failed to properly manage construction, resulting in damage to major nearby public facilities and causing harm to the public.
Daewoo Engineering & Construction plans to respond to this administrative measure by filing for a stay of execution and an administrative lawsuit to cancel the sanction. If the application is accepted, there will be no impact on business operations until the court reaches a verdict on the administrative lawsuit.
The scale of this business suspension amounts to 72.84% of Daewoo Engineering & Construction’s sales last year, and the suspension is scheduled to begin on January 23 next year.
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