Ousting HDC Hyundai

On Monday, the government asked the Seoul city government to impose the “most severe punishment” on HDC Hyundai Development Company over the deadly partial collapse of a highrise building in January, which left six workers dead. The harshest penalty under the current law is the cancellation of business registration. No builder has had its license canceled since Dong-Ah Construction in 1994 due to the collapse of the Seongsu Bridge on the Han River.

The Seoul Metropolitan Government will likely slap penalties on HDC by September. City Hall should not provide leniency without good reason. The frequent safety accidents resulting from shoddy work by builders are due to light punishment compared to the benefits earned by poor construction. Regulators should use HDC’s case as an opportunity to strengthen compliance with industrial standards and rules as well as root out shoddy construction practices.

According to the investigation report by the Ministry of Land, Infrastructure and Transport, the crumbling of the outer wall of the 39-story apartment building under construction in Gwangju, 330 kilometers south of Seoul, was due to three causes: The builder changed the construction method of the 39th floor without a structural review, weakened the bearing capacity of the 36th to 38th floors by failing to install concrete supports and used concrete with substandard strength.

The ministry announced a set of strong measures. For instance, the central government will directly cancel the business registration of builders that cause the deaths of more than three people or five workers due to serious damage to facilities. It will also ban such builders from applying for a new license for five years. It has also decided to apply a punitive damages system that triples the liability for damages.