Why not sanction Hyundai Engineering & Construction, which is a ‘hindrance to national projects’? 'Spreading anger'

[Anchor]
Although Hyundai Engineering & Construction, a party to the private contract, unilaterally abandoned the construction of Gadeok New Airport, the Ministry of Strategy and Finance, which is in charge of the National Contract Act, stated that it cannot impose sanctions.

Local civil society groups are protesting, saying that if Hyundai Engineering & Construction, which has caused significant disruption to national projects, is not designated as an unfair company, it will set a dangerous precedent that will shake the foundation of the National Contract Act.

Reporter Kim Min-wook reports the news.

[reporter]
Last May, Hyundai Engineering & Construction, the preferred bidder for the negotiated contract, unilaterally abandoned the construction of Gadeok New Airport.

The request for a period of 108 months instead of the 84 months stated in the bid notice was unilaterally withdrawn, sparking controversy over violation of the National Contract Act.

According to Article 27 of the National Contract Act, if a company fails to conclude or perform an act related to the execution of a contract without a justifiable reason, its participation in the bidding will be restricted as an illegal company.

In other words, whether there was a ‘legitimate reason’ becomes a legal issue.

Regarding this, the Ministry of Strategy and Finance, which is in charge of the National Contract Act, is in the position that legal sanctions are difficult to impose.

The Ministry of Strategy and Finance stated that it is difficult to say that Hyundai Engineering & Construction has an obligation to conclude a contract because it has only submitted basic design documents and has not signed a preliminary contract.

On the other hand, civil society groups criticized that setting a precedent of not penalizing companies that unilaterally give up contracts during the process would have a serious negative impact on all national projects in the future.

[Lee Ji-hoo/Chairman of Citizen Sympathy, Preparing for the Future Society]

“I do not understand the fact that the state cannot impose sanctions on Hyundai Engineering & Construction, which pursues only corporate profits.”

The legal community believes that a comprehensive review of contracts and public offering guidelines is necessary, separate from the interpretation of the Ministry of Strategy and Finance's laws.

[Park Dong-il/Attorney]

Considering that (Article 27, Paragraph 1, Item 9, Item B of the National Contract Act) stipulates that a person can be designated as an unfair business operator even in the case of ‘refusing to conclude a contract without justifiable reasons,’ whether to sanction Hyundai Engineering & Construction requires a closer factual review.

“It appears that this will be decided through discussion and specific judgment.”

As the Ministry of Land, Infrastructure and Transport announced that it would review whether to impose sanctions after receiving the response from the Ministry of Strategy and Finance, attention is focused on whether the company will be finally designated as an unfair company.

This is KNN Kim Min-wook.

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Why not sanction Hyundai Engineering & Construction, which is a 'hindrance to national projects'? 'Spreading anger'
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