Daewoo E&C Avoids Two-Month Suspension as Court Grants Injunction

Daewoo E&C announced on the 13th that the court has accepted its request to suspend the enforcement of a two-month business suspension order related to the collapse of a retaining wall at an officetel construction site in Gasan-dong, Geumcheon-gu, Seoul.

The accident, which occurred in August 2018, caused the ground at the construction site and the surrounding road to sink to a size of 30 meters wide, 10 meters long, and 6 meters deep, forcing about 200 residents of nearby apartments to evacuate. In December of last year, the Seoul Metropolitan Government imposed a two-month suspension of Daewoo E&C's civil engineering and architectural construction business.

At the time, the city cited "damage to major public facilities in the vicinity and harm to the public due to intentional or negligent poor construction management" as the reason for the penalty. The business suspension was scheduled to begin on the 23rd of this month. Projects or sites for which contracts were signed or permits obtained prior to the administrative action can continue construction.

Daewoo E&C Euljiro Headquarters. Provided by Daewoo E&C

According to Daewoo E&C, the court stated, "It is recognized that it is necessary to suspend the effectiveness of the order in order to prevent irreparable damage to the applicant (Daewoo E&C)," and "It cannot be recognized that there is a high probability of significant impact on specific and individual public interests," thus accepting the request for suspension of enforcement.

The company added, "With the court's decision to accept the request for suspension of enforcement, the effect of the business suspension order is halted, and there will be no impact on our business activities until a verdict is reached in the administrative litigation to cancel the penalty."