POSCO E&C Ordered to Pay 3.9 Billion Won Compensation due to substandard highway construction in Vietnam
POSCO Engineering & Construction (POSCO E&C) has been mandated to pay substantial compensation for its recognized responsibility in substandard highway construction in Vietnam. According to Vietnamese local media, VN Express, on Oct. 28, the Hanoi People’s Court has ordered POSCO E&C to compensate 710 billion dong (US$28.9 million) to the ordering party, asserting that the company failed to meet safety standards in the construction of the “Da Nang – Quang Ngai highway.”
The court also sentenced a mass prison term for 22 people, including 11 former employees of the Vietnam Expressway Corporation (VEC), under the Ministry of Transport, on charges of job negligence and violation of related laws.
Completed in 2018, the Da Nang – Quang Ngai highway had a total expenditure of 34.5 trillion dong (US$1.40 billion). Funding for the construction was sourced through the Japan International Cooperation Agency (JICA), the World Bank (WB), and government funds. However, after a month of its opening, controversies over substandard construction erupted when numerous places on the highway were found damaged by heavy rain.
Source: https://www.businesskorea.co.kr/news/articleView.html?idxno=204764
