Hyundai Engineering & Construction is experiencing a decline in stock prices for the third consecutive trading day due to the fallout from a rebar shortage in the GTX-A Samsung Station construction project. Concerns over the financial burden of reinforcement costs and potential administrative penalties are weighing heavily on investor sentiment.
As of 2:20 PM on May 19, the Korea Exchange reported that Hyundai Engineering & Construction shares were trading at 139,700 won, down 5,200 won (3.59%) from the previous trading day. The stock had already dropped 8.45% on May 15 and fell another 6.52% on May 18, totaling a decline of over 14% in just two days. This marks three consecutive days of falling prices.
The recent drop is attributed to the confirmation of a significant rebar shortage at the GTX-A Samsung Station construction site. According to the Ministry of Land, Infrastructure and Transport, 50 out of 80 columns in the underground fifth-floor platform failed to meet load-bearing standards, with approximately 178 tons of main rebar missing.
Hyundai Engineering & Construction stated that it discovered the issue during an internal quality inspection last year and reported it to the Seoul city government. The company is currently undertaking safety reinforcement work using steel plate reinforcement methods. However, market sentiment is more concerned about the potential for penalties and restrictions on future bidding rather than the reinforcement costs themselves.
In fact, the Seoul city government has reportedly initiated procedures to impose penalties on Hyundai Engineering & Construction. Industry analysts suggest that if penalties are enforced, they could negatively impact the company's ability to bid on public projects and its construction capability assessments.
* This article has been translated by AI.
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