"Like the Three Corporate Regulation Laws"... Business Community Launches All-Out Effort to Block Serious Accident Punishment Act

On the 22nd, at the Korea Federation of Small and Medium Business in Yeouido, Seoul, Kim Gi-moon, Chairman of the Korea Federation of Small and Medium Business, delivered a statement during the announcement of economic organizations' positions to halt the legislation of the Serious Accidents Punishment Act. From the left: Ban Won-ik, Executive Vice President of the Federation of Korean Mid-sized Enterprises; Woo Tae-hee, Executive Vice President of the Korea Chamber of Commerce and Industry; Kim Young-joo, Chairman of the Korea International Trade Association; Kim Gi-moon, Chairman of the Korea Federation of Small and Medium Business; Sohn Kyung-shik, Chairman of the Korea Employers Federation; Kim Young-yoon, Chairman of the Korea Specialty Contractors Association; Kwon Tae-shin, Executive Vice President of the Federation of Korean Industries. Photo by Kang Jin-hyung aymsdream@

[Asia Economy Reporters Kiho Sung and Heeyoon Kim] Sohn Kyung-shik, Chairman of the Korea Employers Federation, urgently visited the National Assembly on the morning of the 29th to convey business leaders' concerns regarding the amendment to the Serious Accidents Punishment Act (Serious Accidents Act). Major economic organizations also delivered opinion letters reflecting companies' positions to the National Assembly immediately after the government submitted its amendment proposal the previous day, putting their final efforts into blocking the bill. This movement aims to prevent the worst-case scenario where the economic sector's views are ignored and the bill is passed swiftly, as happened with the previously processed three corporate regulation laws (Commercial Act, Fair Trade Act, and Financial Group Supervision Act).

At 9 a.m. that day, Chairman Sohn met with Baek Hye-ryun, the chairperson of the Legislation and Judiciary Committee’s bill review subcommittee and the ruling party’s secretary of the committee, who is a member of the Democratic Party of Korea, and requested the suspension of the Serious Accidents Act legislation, stating, "Although the government’s amendment has been submitted, the fundamental fact that management officials are punished even when accidents occur without accountability seems unchanged, which is worrisome." Economic organizations such as the Korea Employers Federation and the Korea Federation of SMEs have also been conveying companies’ opinions on the Serious Accidents Punishment Act to the policy offices of both ruling and opposition parties, lawmakers’ offices, and the Legislation and Judiciary Committee since the government proposal was submitted the previous day.

The reason the business community is taking such an active stance is that they judge the government’s amendment to be significantly insufficient. There is also a sense of crisis that, as with the three corporate regulation laws, the ruling party and government may unilaterally proceed with the bill’s passage.

Seo Seung-won, Executive Vice President of the Korea Federation of SMEs, pointed out, "Although the amendment decided to postpone the application of the law for workplaces with 50 to fewer than 100 employees for two years, it is still insufficient for the SME sector. The law should prevent accidents, but while some levels have been adjusted, the bill still only contains unilateral punishment, which could end up being a law that vents frustration on companies."

Seo added, "To prevent accidents, the government, companies, employers, and workers must all work together, but the government’s proposal only slightly differentiates the scope of application and sets a grace period, so the original concerns have not been resolved. Instead of legislation focused on punishment, the bill should be supplemented with provisions that promote investment in facilities and education to prevent industrial accidents, so that it can have practical effects in SME workplaces."

Jeon Seung-tae, Industrial Safety Team Leader at the Korea Employers Federation, stated, "We are monitoring the discussions in the Legislation and Judiciary Committee’s bill review subcommittee and plan to prepare active countermeasures."

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