Mong-gyu Chung, Chairman of HDC Group
“Restore trust by making people feel it”
Expected to invest 200 billion won in 70 months
In connection with the collapse of Gwangju Hwajeong I-Park in January, which killed six workers, HDC Hyundai Development Company decided to completely demolish 8 apartment buildings and construct new ones.
HDC Group Chairman Chung Mong-gyu held a press conference at the Yongsan office building in Seoul on the 4th and announced, “We will demolish all 8 Hwajeong I-Park buildings and build new ones in response to the requests of prospective tenants.” Chairman Jung said, “Although it has been four months since the accident, we are sorry once once more that we have not been able to show the level of resolution of the accident to the public other than compensation for the families of the workers who have passed away.”
Hyeonsan has been negotiating with prospective tenants and nearby merchants since the collapse, but it seems that they have put a super strong case of ‘reconstruction following demolition’ when no clear plan has been prepared. Chairman Jung said, “After completing the rescue operation for the missing person, we have been having conversations with customers who are going to move in and merchants in nearby shopping centers to compensate for the damage, but the anxiety of customers who are planning to move in has grown, and the company also continues to experience uncertainty, restoring corporate value and trust in the company. It was also delayed.”
Hyeonsan has invested regarding 175 billion won in compensation for the bereaved family and recovery in relation to the collapse. The demolition and construction costs, as well as the housing support costs for the occupants, will be covered in full, and the estimated investment cost is regarding 200 billion won.
It is also known that the next government’s ‘taking care of the people of Gwangju’ had an influence on this decision. Candidate Hee-ryong Won for Minister of Land, Infrastructure and Transport visited the site on the 29th of last month and said, “I heard that the work was not being carried out enough to build trust in the prospective tenants or damaged shopping malls in the process of measures and compensation following the accident.” “If it happens once more, the business will go bankrupt and the government officials will have to go to jail,” he said.
The total demolition and re-construction period takes regarding 70 months. A representative from Hyeonsan said, “The method of demolition has not been decided yet, and there are no cases like this in Korea.” It is estimated that it will take regarding 70 months from demolition to re-construction.”
Hwajeong I-Park was originally scheduled to occupy 847 households on November 30, but the move-in was delayed once due to a collapse in construction. With this decision, it is expected that occupancy will be possible only following 2028.
On the other hand, the meeting of prospective residents of Hwajeong I-Park demanded, “Hyeonsan must make a big decision on how to provide housing support while the move-in is delayed.” They said, “We will pass on the opinions of prospective tenants to Hyeonsan soon. “We need to prepare housing measures for the lengthy construction period,” he said.
