HDC Group Chair offers to resign over deadly construction site accident

Yoo Joon-ho and Cho Jeehyun 2022. 1. 17. 13:51
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[Photo by Lee Seung-hwan]
HDC Group Chairman Chung Mong-gyu offered to resign over the collapse of a residential high-rise under construction in Gwangju City, which was the second deadly industrial accident in a year by real estate development and civil engineering company HDC Hyundai Development Company.

“I take full responsibility for the two accidents in Gwangju,” said Chung Monday in a press conference as he bowed deeply in apology for the latest incident that has left five workers missing and one dead.

His resignation comes six days after part of a 39-story apartment building under construction in Gwangju, about 300 kilometers south of Seoul, collapsed to the ground.

“I deeply apologize to the family members of victims of the accident in Gwangju and to the public,” said Chung.

[Photo by Lee Seung-hwan]
The company will demolish and rebuild the apartment if negligence in safety mandate is found to be the primary cause.

It will extend safety warranty to 30 years from statutory 10 years to ensure safety for existing and new apartments.

The latest building collapse is the company’s second fatal accident in less than a year. In July last year, a building broke down during demolition in the company’s housing redevelopment project, also in Gwangju, and fell on a bus on a nearby road. Nine bus passengers were killed and eight were severely injured by the accident.

[Photo by Yonhap]
Chung is resigning after heading HDC Hyundai Development for 23 years as chairman. He, however, will remain as the largest shareholder of the country’s ninth-largest builder.

On Monday, shares of HDC Hyundai Development closed 0.79 percent lower at 18,750 won ($15.72).

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