HDC Hyundai Development to dismantle, rebuild, 8 structures

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HDC Hyundai Development to dismantle, rebuild, 8 structures

HDC Holdings Chairman Chung Mong-gyu, third from left, and HDC Hyundai Development executives apologize at the construction company's headquarters in Yongsan, Seoul, on Wednesday for the collapse of an apartment building under construction in Gwangju that killed six workers in January. [NEWS1]

HDC Holdings Chairman Chung Mong-gyu, third from left, and HDC Hyundai Development executives apologize at the construction company's headquarters in Yongsan, Seoul, on Wednesday for the collapse of an apartment building under construction in Gwangju that killed six workers in January. [NEWS1]

HDC Hyundai Development is dismantling eight nearly-completed buildings in Gwangju and starting over, at the cost of almost $300 million.  
 
At the I-Park complex, it is tearing down a structure that partially collapsed in January, killing six, and seven others in the same complex.  
 
"We will dismantle all eight apartment buildings in Hwajeong-dong and rebuild I-Park as demanded by prospective tenants," said Chung Mong-gyu, chairman of HDC Holdings, which owns 41.5 percent of HDC Hyundai Development.  
 
"For the past four months, we have been discussing compensation with the tenants, and they expressed safety concerns."  
 
An initial investigation into the collapse determined that design changes were made without proper structural review, loads were increased, proper supports were not installed and concrete on the lower floors was not strong enough. It also cited quality control issues.  
 
"Once again, I deeply apologize to the families of the victims and the people for the accident in Gwangju," Chung said.  
 
The buildings are almost finished, and 847 tenants were to begin moving in on Nov. 30.
 
HDC Hyundai Development said it will take more than five years to demolish and rebuild the entire complex and that the whole project, including compensation to the tenants, will cost 370 billion won ($292 million).
 
"The company's existence is meaningless if it doesn't gain the trust of the customers and the people," Chung said. "We will work to create an I-Park that gains the trust of customers by putting safety first."  
 
No mention was made about options for apartment owners who want to back out of the project altogether.  
 
After the accident, Chung stepped down as CEO of HDC Hyundai Development. Eleven people have been indicted on charges of violating housing and construction regulations.
 
HDC Hyundai Development's I'Park apartment in Hwajeong-dong, Gwangju, that collapsed while under construction in January. Six workers were killed. [YONHAP]

HDC Hyundai Development's I'Park apartment in Hwajeong-dong, Gwangju, that collapsed while under construction in January. Six workers were killed. [YONHAP]

In March, the company's business license was suspended by the Seoul city government for eight months for another accident. An additional eight months were added in April.
 
The first suspension was for the company's direct involvement in the project and the second was for its failure to properly manage subcontractors.
 
In the accident in June 2021, a collapse of a building being demolished in Gwangju killed nine people in a passing bus.
 
During the license suspension, HDC Hyundai Construction is barred from marketing for new projects or bidding for new projects. It is allowed to continue existing projects.
 
Further suspensions, or a complete revocation, are possible for the accident in January.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]
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