Construction Industry Strongly Opposes Passage of the 'Serious Accidents Act' in the National Assembly

[Asia Economy Reporter Yoo In-ho] The construction industry has strongly opposed the passage of the Serious Accidents Punishment Act in the National Assembly plenary session.

The construction industry agrees with the purpose of the Serious Accidents Punishment Act (Serious Accidents Act) but argues that it is practically difficult for CEOs to oversee every individual site and that the level of punishment is too severe.

This is because, due to the nature of the construction industry, large-scale manpower and heavy equipment are mobilized over several years, increasing the likelihood of accidents, which often lead to casualties when they occur.

The Korea Construction Association issued a statement expressing deep regret and disappointment that despite concerns and pleas from the construction industry and other industries regarding the enactment of the Serious Accidents Act, the National Assembly (Legislation and Judiciary Committee) passed the law on the 8th.

The construction industry claims that large construction companies have hundreds of sites, making it difficult for CEOs to oversee them all, and that the structure holding primary contractors responsible for accidents involving subcontractor employees is harsh.

According to the Ministry of Employment and Labor, as of the end of September last year, there were 661 industrial accident fatalities, of which 349 were construction workers. The construction industry accounts for 52.79% of total fatalities.

According to the Korea Construction Association, as of last year, the top 10 large construction companies each operated about 270 sites (including 67 overseas sites). Even construction companies ranked outside the top 100 average about 32 sites.

Company A, one of the top 10 construction firms, has over 140 domestic sites, and it is impossible for the CEO to personally oversee each site to prevent accidents. A company official stated, "It is realistically and physically impossible for the CEO to personally manage each site to prevent accidents," adding, "For large construction companies, even a two-month business suspension results in losses of several hundred billion won, and a two-year suspension leads to strikes."

Company B, which operates 110 domestic construction sites, anticipates serious management crises because, due to the nature of the construction industry, even if problems arise at subcontractors, the primary contractor is held responsible, and CEOs may face imprisonment, causing managerial issues.

A representative from large construction company C lamented, "In large apartment complex sites, when many workers are deployed, over 1,000 people may be on site daily, and unless headquarters staff supervise each worker one-on-one, achieving a 'zero accident rate' is practically impossible."

The situation is similar for other domestic construction companies.

The Korea Federation of Construction Associations submitted a petition titled "Request to Suspend Legislation of the Serious Accidents Punishment Act" to the National Assembly Legislation and Judiciary Committee at the end of last year on behalf of 16 member construction organizations, and on the 6th, joined 10 economic organizations including the Korea Employers Federation in appealing for reconsideration of the Act’s enactment for these reasons.

On that day, Kim Sang-su, president of the Korea Construction Association, said, "There are about 120,000 construction sites domestically and abroad, and large companies have nearly 300 sites each, making it difficult for CEOs to oversee all sites," adding, "A situation where numerous companies must close their doors is approaching."

The construction industry argues that since it invests heavily in safety management, the paradigm of industrial safety policy should shift from punishment to prevention. They claim that supplementary measures to the Serious Accidents Act are necessary. The mandatory minimum sentence (imprisonment of one year or more) must be revised to a maximum sentence system, and there should be provisions exempting liability if considerable efforts were made to prevent accidents.

A representative from the Korea Federation of Construction Associations emphasized, "When formulating policies, the focus should be on preventing serious accidents rather than imposing harsh punishments on companies," adding, "If regulatory-only policies that threaten the survival of companies are repeatedly implemented, it will have the adverse effect of lowering construction quality, such as causing poor construction."

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