Government to Impose 10-Month Business Halt for GS Engineering over Parking Garage Collapse


(ATTN: ADDS GS’ stance in penultimate para)

The Ministry of Land, Infrastructure and Transport announced Sunday that it will pursue a 10-month suspension of operations for GS Engineering & Construction Corp. due to the collapse of a parking garage earlier this year, which was attributed to the inadequate use of reinforcing rods in the columns.

On April 29, the roof of the underground parking lot at an apartment complex in Geomdan-dong, Incheon, caved in while being built by GS.

The ministry plans to suspend the company’s operations for eight months and request the Seoul city government to add an additional two-month business stoppage for neglecting safety checks.

The ministry will also seek to either suspend or revoke the licenses of subcontractors and design firms involved in the project after a government commission, consisting of experts, completes hearings and deliberations, which is estimated to take three to five months.

The ministry is also asking for a police investigation into possible legal violations by the related companies.

Investigations revealed that certain buildings at the Geomdan complex did not meet standards in terms of concrete strength due to suspected substandard compaction processes.

“I feel a heavy responsibility for causing public concern,” Land Minister Won Hee-ryong said. “We will take a zero-tolerance stance on any illegalities committed by those responsible for such incidents.”

GS has apologized for the collapse and stated that it will rebuild all 17 apartment buildings at the complex.

In response to the ministry’s announcement, GS said it will “carefully review what caused the case and whether the planned restrictive moves are appropriate, and fully explain” its stance and other details during the upcoming sessions.

The ministry has conducted an inspection of 83 sites of construction led by GS across the country and found no issues with the use of metal bars or the strength of the concrete.

Related Articles State housing developer LH searched in probe into shoddy apartment construction (LEAD) Gov’t to launch safety checks on flat-plate apartments in private sector (2nd LD) Gov’t vows compensation for residents amid probe into faulty apartment construction (LEAD) Yoon vows to dismantle construction ‘cartel’ following faulty construction of underground parking lots (LEAD) GS Engineering & Construction dips on woes over apartment parking lot collapse

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