From the issue of missing rebar to unrest in the Middle East… Hyundai Engineering & Construction plummets around 6%

Hyundai Engineering & Construction (000720) is falling sharply on the 18th due to a construction error in the Seoul Metropolitan Rapid Transit (GTX) Samseong Station, resulting in tensions in the Middle East.

At 2:29 p.m. on this day, Hyundai Engineering & Construction is trading at 144,600 won, down 10,400 won (6.71%) from the previous day. It fell to 136,200 won during trading.

The weak stock price is interpreted as a result of frozen investment sentiment due to a large-scale missing rebar in the construction section of the GTX Samseong Station complex development project, which Hyundai Engineering & Construction was responsible for constructing.

This came to the surface in November last year when Hyundai Engineering & Construction discovered missing rebar in a five-story underground structure while conducting its own quality inspection and voluntarily reported it to the Seoul Metropolitan Government.

As a result of the investigation, it was confirmed that only one main rebar was installed in each of the 80 pillars on the fifth floor underground, which should have been two per design. The Ministry of Land, Infrastructure and Transport announced that 50 of the 80 pillars with only half of the reinforcing bars did not meet the key standard for withstanding the upper load.

Accordingly, the Ministry of Land, Infrastructure and Transport announced on this day that it will begin a special on-site inspection to intensively check the adequacy of the construction process for the construction of the Yeongdong-daero underground space complex development project, which is currently constructing the GTX Samseong Station section.

In addition, as anxiety about the war between the U.S. and Iran reignites, construction stocks in general, which had attracted attention due to expectations of reconstruction stocks, are slowing down. According to Axios, the United States is reportedly discussing whether to resume military options against Iran.

Accordingly, GS E&C (006360) (-3.12%) and DL E&C (375500) (-1.87%) are falling.

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