Sanitation and Safety Act Also 'Passing Over Companies'... Maximum Sentence Up to 10 Years and 6 Months for Violations

Forced as Original Plan, Harsher on SMEs

[Asia Economy Reporters Choi Dae-yeol and Yoo Je-hoon] As the sentencing guidelines raising the maximum recommended sentence for violations of the Industrial Safety and Health Act (San-an Act) to 10 years and 6 months in prison have been finalized, voices expressing despair are erupting from the industrial sector. There is growing concern that corporate activities will be further restricted due to the strengthened punishments being on par with the “Serious Accident Corporate Punishment Act (Serious Accident Act),” scheduled to take effect in January next year. In particular, anxiety among small and medium-sized enterprises (SMEs), where the CEO effectively takes charge of safety and health responsibilities, is higher than ever.

According to the industry on the 30th, the Supreme Court Sentencing Commission finalized the sentencing guidelines the day before, which allow for a maximum prison sentence of 10 years and 6 months for business owners or responsible parties if a worker dies due to violations of safety and health obligations. Sentencing guidelines serve as a reference for judges when determining sentences; although they are not binding, judges must provide reasons if they issue rulings that deviate from these guidelines.

The industry also agrees with the intent to reduce safety accidents through the San-an Act and related laws. However, there are many concerns about the punitive-focused legislation that emphasizes aggravating factors over mitigating ones, ignoring the voices from the corporate field. In particular, concerns have been raised about the fairness of sentencing between similar crimes under the same law and the inclusion of subcontractors as subjects of punishment, which could further restrict corporate activities. Lim Woo-taek, Head of Safety and Health at the Korea Employers Federation, said, "Management opinions were hardly reflected, such as uniformly applying the legal standards to the sentencing guidelines."

SMEs are facing an urgent crisis. Most owners and CEOs must take responsibility for safety, and even if they try to hire separate safety and health personnel, securing manpower is not easy.

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