[Market Focus] Kyeryong Construction Plunges on News of Six-Month Business Suspension

Shares Fall Over 10% in Early Trading

On October 22, shares of Kyeryong Construction are experiencing a sharp decline of over 10% in early trading. Investor sentiment appears to have weakened following the Ministry of Land, Infrastructure and Transport's decision to suspend the company from business operations for six months due to a bridge collapse accident in Siheung, Gyeonggi Province.

As of 9:20 a.m. on this day, Kyeryong Construction shares were trading at 17,350 won on the Korea Exchange, down 10.10% from the previous trading day. The stock opened at 18,810 won and at one point during the session fell as low as 17,000 won.

On the previous day, Kyeryong Construction disclosed that it had received a six-month business suspension for its civil engineering and architectural construction work. This action is related to an accident in April last year during the construction of the Shihwa MTV Jung 1-117 Line (West Coast Bypass Road), where, in the process of installing girders (structural beams) on top of piers (P3~P4), the girders fractured, collided, and collapsed in succession, resulting in the collapse of nine girders.

The suspension period is from December 1, 2025, to May 31, 2026, and the amount affected by the suspension is 2.1368 trillion won, which corresponds to 67.4% of the company’s recent total sales.

Kyeryong Construction announced plans to file for an injunction. The company stated, "We plan to respond by filing an application for a stay of execution against the administrative disposition, as well as an administrative lawsuit to cancel the disposition," adding, "If the application for a stay of execution is accepted, there will be no impact on our business activities until the court's ruling on the administrative lawsuit."

This content was produced with the assistance of AI translation services.