The Seoul city government has extended the suspension of HDC Hyundai Development Company's business license following the fatal collapse at a construction site in the southern city of Gwangju.

The city government announced on Wednesday that it has decided to penalize the business for an additional eight months for violating its subcontractor management obligations as it had failed to prevent its subcontractors from illegally re-subcontracting their work.

This decision adds to the previous eight-month suspension imposed on the company for poor construction, resulting in a suspension for one year and four months.

This means the company will not be able to bid for new projects during that period, but it will still be able to complete projects that it signed contracts for before the suspension.

The suspensions are consequences from a construction accident in the city of Gwangju in June 2021, which saw a portion of a building under demolition collapse on a bus, killing nine people and injuring eight others.