Meeting with SMEs, Joo Ho-young: "Will Ensure No Overlegislation of Serious Accident Punishment Act"

[Image source=Yonhap News]

[Asia Economy Reporter Kim Hyemin] On the 4th, Joo Ho-young, the floor leader of the People Power Party, met with representatives from the small and medium-sized enterprise (SME) sector and stated regarding the currently discussed Serious Accident Punishment Act (Serious Accident Act), "We will enact necessary legislation, but we will do our best to prevent excessive legislation."

On the same day, Joo held a meeting with heads of SME organizations who visited the National Assembly in the afternoon, saying, "I understand that there are significant concerns from the business and construction sectors regarding the enactment of the Serious Accident Act." Attendees included Kim Ki-moon, president of the Korea Federation of SMEs, Kim Young-yoon, president of the Korea Specialty Contractors Association, and Kim Im-yong, acting president of the Korea Federation of Micro Enterprise. They delivered the SME sector's position statement on the enactment of the Serious Accident Act to Floor Leader Joo.

Joo said, "I understand that the bill is currently being discussed in the Legislation and Judiciary Committee's bill review subcommittee, but due to various issues, the articles have not yet been fully finalized." He added, "According to the Organisation for Economic Co-operation and Development (OECD), South Korea has the highest number of casualties due to industrial accidents. Everyone agrees on the goal of reducing this number," but explained, "There are differing views on the methods."

He emphasized, "The Serious Accident Act must first be examined to ensure its legal framework complies with the Constitution," and stated, "The People Power Party approaches this from the standpoint that legislation should not be excessive or violate the fundamental principle of responsibility in criminal law."

He continued, "We will enact necessary legislation, but we are doing our best to prepare so that it does not become excessive legislation, does not conflict with the legal system, or include provisions that cause companies to bear unexpected liabilities."

At the meeting, the SME sector expressed concerns about the enactment of the Serious Accident Act.

Kim Ki-moon, president of the Korea Federation of SMEs, said, "The part about punishing representatives with imprisonment of two years or more is the most worrisome aspect from the SME perspective," adding, "The law stipulates quadruple punishments including corporate fines, administrative sanctions, punitive damages, and punishment of representatives, which is too harsh for SMEs to comply with."

He explained, "Unlike large corporations, SMEs cannot appoint professional managers, and almost 99% of representatives are owners. If these owners are punished, even if an accident occurs, it cannot be managed, and many companies end up going bankrupt." He argued that if the law is to be strengthened, the current Industrial Safety and Health Act regulations should be reorganized and the punishment standards in the Serious Accident Act should be revised.

Kim proposed, "There are 1,122 regulations under the current Industrial Safety and Health Act; these should be clarified, and companies that comply should be exempt from punishment." He added, "The Serious Accident Act considers even a single death as a serious accident, but unforeseen accidents can happen. Criminal punishment should be applied when fatal accidents occur repeatedly, and imprisonment terms should be changed to have upper limits."

Kim Young-yoon, president of the Korea Specialty Contractors Association, said, "The construction industry is expected to be the most affected sector if the Serious Accident Act passes," and remarked, "There are construction sites nationwide, but the idea that a construction company representative can manage five to ten sites across the country is fundamentally flawed."

He emphasized, "Construction work is highly exposed to natural environments, so there are many natural disaster-type accidents. It is difficult to expect a representative in Seoul to take measures just because it is windy or icy today," adding, "That is why there is a safety manager on site who holds a nationally recognized certification to manage safety."

Kim said, "In the construction industry, if an accident occurs, the company is immediately excluded from bidding, which is tantamount to a death sentence," and stated, "While punishing representatives may have a warning effect, from the perspective of specialty contractors, the punishment of representatives for accidents that occur due to irresistible forces should be reconsidered."

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