[2020 National Audit] Industrial Complex Accidents under Korea Industrial Complex Corporation Jurisdiction: SMEs Twice as Many as Large Corporations

Since 2016, 63 Industrial Complex Accidents: 82 Cases in SMEs, 42 in Large Corporations
Only One Safety Management Personnel per Provincial Regional Headquarters

Sihwa National Industrial Complex. Photo by Asia Economy DB

[Asia Economy Reporter Kim Heeyoon] Among the 63 industrial complexes managed by the Korea Industrial Complex Corporation, accidents occurring in small and medium-sized enterprises (SMEs) over the past five years were found to be twice as many as those in large corporations.

According to data titled "Accident Status in Industrial Complexes under the Jurisdiction of the Korea Industrial Complex Corporation in the Last Five Years," submitted by Lee Jangseop, a member of the National Assembly's Industry, Trade, Energy, Small and Medium Enterprises Committee from the Democratic Party of Korea, a total of 124 accidents occurred nationwide in 63 industrial complexes from 2016 to September this year, resulting in 76 deaths and damages amounting to 54.5 billion KRW.

In particular, the total number of accidents in SMEs over the past five years was 82 cases, nearly twice that of the 42 cases in large corporations. The number of accidents in SMEs has consistently remained at about twice the level of large corporations, and this year it exceeded three times, indicating that safety management in SMEs is relatively very vulnerable.

By type of accident, fires were the most frequent with 48 cases, followed by industrial accidents with 47 cases. However, looking at the annual trend, factors such as fires, gas/chemical substances, and explosions have decreased in proportion, while industrial accidents have shown a clear increasing trend, rising from 29% five years ago to 52% this year.

The Korea Industrial Complex Corporation's safety budget accounts for about 0.7% of the total corporation budget, with approximately 7 billion KRW allocated this year. Although this amount is more than 20 times the 280 million KRW from five years ago, over 6.5 billion KRW of it is allocated to the safety system establishment budget for petrochemical complexes, meaning that the budget for disaster and safety management remains only 280 million KRW, the same as five years ago.

Meanwhile, the dedicated safety management personnel are found to be only one person per regional headquarters. For example, the Chungbuk and Chungnam regions have nine national industrial complexes, about 550 resident companies, and approximately 15,000 workers. However, there is only one dedicated safety management personnel responsible for the entire Chungbuk and Chungnam regions. It is insufficient for one person to manage multiple industrial complexes within a provincial-level area.

Assemblyman Lee Jangseop said, "Accidents within industrial complexes managed by the Korea Industrial Complex Corporation are concentrated in SMEs," adding, "Due to various conditions, SMEs are inevitably more vulnerable to safety accidents compared to large corporations. The corporation should expand its disaster and safety management budget and allocate it efficiently to strengthen the safety management capabilities of SMEs."

He continued, "The increasing rate of industrial accident incidents within industrial complexes should also be noted with vigilance. While other accidents such as fires and explosions are concerning, industrial accidents are often human-caused disasters resulting from safety negligence and poor management," emphasizing, "It is necessary to secure dedicated safety management personnel and strengthen continuous management measures to ensure that resident companies within industrial complexes strictly comply with safety regulations."

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