HDC chief steps down over collapse of Gwangju apartment building

HDC Hyundai Development Chairman Chung Mong-gyu bows in apology to take responsibility for a fatal accident that occurred at its construction site in Gwangju during a press conference held at the Yongsan IPark Mall, Monday. Yonhap

By Kim Hyun-bin

The head of one of Korea's largest builders stepped down from his post, Monday, taking responsibility for the fatal collapse of an apartment building in the southwestern city of Gwangju, which has left at least one construction worker dead and five others still missing.

"I feel the responsibility and will step down from the chairman post of HDC Hyundai Development," Chairman Chung Mong-gyu said at a press conference at Yongsan IPark Mall in Seoul, Monday.

This is the second fatal accident involving the builder in Gwangju, located about 330 kilometers south of Seoul. Chung said the accidents were a "great disappointment" and vowed to implement measures to restore trust.

The accidents linked to Korea's ninth-largest builder have dealt a huge blow to the company's image. Police and government officials launched probes into the builder over possible violations of safety regulations and other lax practices.

HDC is known for its signature residential apartment brand, "I-Park," but its popularity has been diminishing following the accidents.

"I bow my head and deeply apologize to the family members of the victims of the accident in Gwangju and to the public," he said. "We have caused great disappointment with the two recent accidents in Gwangju. We will establish and implement all measures to restore customer and public trust again."

The chairman stressed that an investigation into the latest accident will be conducted in a transparent manner, and when problems are found, the company will consider reconstructing the apartment complex.

"We will conduct a safety diagnosis by external experts and authorities, and if there is a problem, we will consider a complete demolition of the building and rebuild it," he added.

Last week, Gwangju Mayor Lee Yong-sup said he will find legal measures to restrict HDC from participating in building projects within the city and ordered the construction company to reconstruct the problematic building from scratch.

The collapsed Hwajeong IPark apartment building in Gwangju / Yonhap

Six construction workers went missing after the collapse of the building last week. One was found dead, Friday, while search operations continue for the remaining five.

Chung said, however, he will continue to "fulfill his duty" as the company's largest shareholder. He owns a 33.68 percent stake in HDC Holdings, which controls HDC Hyundai Development and other chemical and retail affiliates.

In the previous accident in June last year, a five-story building collapsed on a city bus, killing nine passengers and seriously injuring eight others. Hyundai Development was the main contractor of that project.

Industry experts believe it will be costly for the company to regain public trust as criticism mounts over HDC's safety and poor practices.

HDC Chairman Chung is the eldest son of Chung Se-yung, who is the third brother of Hyundai Group founder Chung Ju-yung. He led Hyundai Motor Group for three years through 1998, but left the carmaker after his cousin, former Chairman Chung Mong-koo, took over the automobile business.

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