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Photo courtesy of Daewoo Engineering & Construction |
[Alpha Biz= Kim Young Taek] Daewoo Engineering & Construction Co. announced on December 17 that it has received a two-month business suspension order from the Seoul Metropolitan Government covering its civil engineering and building construction operations.
The administrative action is related to a retaining wall collapse that occurred at an officetel construction site in Gasan-dong, Geumcheon District, Seoul, in August 2018.
At the time of the accident, a large-scale ground subsidence occurred at the construction site and an adjacent roadway, measuring approximately 30 meters in width, 10 meters in length, and 6 meters in depth. As a result, around 200 residents from nearby apartment complexes were forced to evacuate as an emergency precaution.
The value of business subject to the suspension amounts to approximately KRW 7.65 trillion, equivalent to 72.8% of Daewoo E&C’s total revenue of KRW 10.54 trillion recorded last year. The suspension is scheduled to take effect on January 23 next year.
Daewoo E&C stated that it plans to actively respond to the administrative measure by filing an application for suspension of enforcement, as well as a lawsuit seeking the cancellation of the administrative disposition.
The company explained that if the court approves the request for suspension of enforcement, the administrative penalty will have no impact on its business operations until a final ruling is issued in the lawsuit.
In addition, Daewoo E&C noted that construction projects for which contracts have already been signed, or for which construction has commenced after obtaining the necessary permits and approvals in accordance with relevant laws prior to the effective date of the suspension, will be allowed to continue.
Alphabiz 김영택 기자(sitory0103@alphabiz.co.kr)
