GS E&C Gets 10-Month Suspension in Korea Over Poor Construction Issue

GS Engineering & Construction Corp., or simply GS E&C, was given a 10-month business suspension by South Korea’s Ministry of Land, Infrastructure and Transport (MOLIT). The administration penalized the construction firm in connection with the collapse of the underground parking of an apartment complex it constructed.

As per Pulse News, the MOLIT announced this past weekend that it is preparing to implement the penalties to hold companies responsible for the design, construction, and supervision accountable for the incident that fortunately did not have casualties. The collapse of the underground parking happened in April.

The apartment complex is being built by GS E&C and developed by Korea Land and Housing Corp. (LH). The original completion date for the buildings was October, but apparently, there will be delays as the construction firm said last month it will tear down and reconstruct the apartment buildings located in Incheon’s Geomdan New Town.

At any rate, GS E&C and its contractors will face suspension of up to 10 months due to the poor construction. It was reported that the MOLIT will issue an 8-month suspension while the Seoul Metropolitan Government will hand down the two months, resulting in a total of 10.

In Korea, the maximum level of penalty that the ministry can level against an offending party is eight months as long as there is no casualty. Once the suspension starts, GS E&C will be prohibited from accepting new orders for apartment buildings, including reconstruction works and redevelopment projects.

Business Korea reported that MOLIT’s decision is being interpreted as a reassertion of its zero-tolerance policy of negligent or bad constructions. It was written in the country’s Basic Law on Construction Industry that if poor-quality construction results in serious structural damage, the Ministry of Land and Infrastructure can impose the suspension of the builder’s business operations.

Photo by: GS E&C Website