Democratic Party to Prioritize Amendment of Sanan Act over Serious Accident Act... Assemblyman Jang Cheol-min to Propose Soon

Clearly Assign Safety and Health Obligations to Company CEOs and Increase Fines
The "Different Path" from the Serious Accident Act Advocated by the Justice Party and Labor Groups

On the 5th, Lee Nak-yeon, leader of the Democratic Party of Korea, attended the Economic Headquarters meeting of the National Crisis Overcoming K-New Deal Committee held at the National Assembly and delivered opening remarks. The meeting, held in celebration of Small Business Owners' Day, was attended by related ministers including Park Young-sun, Minister of SMEs and Startups, and Sung Yun-mo, Minister of Trade, Industry and Energy, as well as key small business association leaders such as Kim Kyung-bae, Chairman of the Korea Regional Economy Revitalization Association, and Ha Hyun-soo, Chairman of the National Merchants Federation. Photo by Yoon Dong-ju doso7@

[Asia Economy Reporter Park Cheol-eung] The Democratic Party of Korea is consolidating its party stance toward amending the existing Industrial Safety and Health Act (ISHA) rather than enacting the Serious Accidents Punishment Act (SAPA), which holds corporate representatives criminally liable. The party is also negotiating with the government within this framework. The perspective is that by more clearly specifying the safety management obligations of corporate executives and strengthening financial penalties such as increased fines, industrial accidents can be effectively reduced. The potential unconstitutionality of the SAPA is also being taken into consideration.

On the 5th, Jang Cheol-min, a Democratic Party member of the National Assembly’s Environment and Labor Committee, told Asia Economy in a phone interview, "We are preparing an amendment to the ISHA that specifically imposes safety and health obligations on CEOs and establishes a strengthened fine system that can exert financial pressure. It is almost finalized and will be proposed by next week at the latest. Although it was not initiated at the party’s request, it will effectively become the party’s main bill, and we are consulting with the Ministry of Labor with the same direction," he said.

He added, "The focus is somewhat different from the Serious Accidents Punishment Act," and said, "Both the party and the Ministry of Labor believe that punishment itself should not be the goal, but rather a corporate incentive system that can prevent industrial accidents must be created. If the obligations of management are unclear, actual punishment is difficult, there is a risk of unconstitutionality, and the practical effect of preventing accidents may be low." A Democratic Party official also said, "Although there are lawmakers within the party preparing a SAPA bill, the party’s stance can be seen as the ISHA amendment proposed by Jang Cheol-min."

Democratic Party leader Lee Nak-yeon stated in his September parliamentary negotiation group leader speech, "Every year, about 2,000 workers lose their lives at industrial sites," and said, "The enactment of the Serious Accidents Punishment Act is the beginning." However, on the 27th of last month, he mentioned, "The Serious Accidents Punishment Act will be reviewed in conjunction with other related laws while maintaining its fundamental principles." This suggests a focus on amending the ISHA.

The Serious Accidents Punishment Act proposed by Justice Party lawmaker Kang Eun-mi in June imposes risk prevention obligations on companies and stipulates that if a fatal accident occurs due to violation, the business owner and management responsible may face imprisonment for more than three years or fines ranging from 50 million to 1 billion won. For injury accidents, penalties include imprisonment for up to seven years or fines up to 100 million won. It also imposes punitive damages of three to ten times the amount of damages on business owners, corporations, or institutions.

The business community opposes the bill, calling it excessive punishment for companies. The Korea Employers Federation submitted an opinion to the National Assembly on the 23rd of last month, stating, "Rather than increasing the effect of industrial accident prevention, it only raises anxiety that potential criminals may be created in the event of an accident due to concerns about excessive punishment, which could even lead to avoidance of CEOs and significantly restrict corporate management activities. We should refrain from legislation focused on strengthening punishment and instead establish a systematic preemptive safety management system appropriate to roles and responsibilities within workplaces, as well as develop in-depth and specialized prevention systems and policies tailored to the characteristics of industrial sites."

On the other hand, the labor sector, including the Justice Party and the Korean Confederation of Trade Unions (KCTU), which are pushing strongly for the enactment of the SAPA, are expected to strongly oppose the direction of amending the ISHA. On the 4th, the KCTU Emergency Committee held a press conference in front of the National Assembly to announce the start of a sit-in protest, during which some committee members also held head-shaving ceremonies. Justice Party leader Kim Jong-chul recently criticized the Democratic Party in an interview with Asia Economy, saying they are "only pretending to reform."

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