Daewoo Engineering & Construction (047040.KS) has received a two-month business suspension order.
The company disclosed Wednesday that it received a two-month business suspension order for its civil engineering and construction business from the Seoul Metropolitan Government. The measure stems from an earth retaining wall collapse accident at an officetel construction site in Gasan-dong, Geumcheon-gu, Seoul in August 2018.
The business suspension amount is approximately 7.65 trillion won ($5.4 billion), equivalent to 73% of Daewoo E&C's revenue of approximately 10.54 trillion won last year. The suspension takes effect from January 23 next year.
Daewoo E&C indicated it would pursue legal action. "We plan to respond by filing for a stay of execution and a lawsuit to cancel the administrative action," a company official said. "If the stay of execution is accepted, there will be no impact on business activities until the court ruling on the cancellation lawsuit."
