3.563 Trillion KRW Loan for Industrial Accident Prevention Facilities... Up to 1 Billion KRW Support per Workplace

by Moon Chaeseok

Published 02 Jan.2022 12:15(KST)

Fixed Interest Rate 1.5% per Annum, 3-Year Grace Period, 7-Year Installment Repayment

Portraits of 99 workers who died from industrial accidents displayed./Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] The Korea Occupational Safety and Health Agency announced on the 2nd that it will expand the 'Industrial Accident Prevention Facility Loan Support Project' this year to improve safety and health facilities at workplaces following the enforcement of the Serious Accidents Punishment Act on the 27th.

This project provides long-term, low-interest loans for investment costs in industrial accident prevention facilities to workplaces with insufficient financial capacity. This year's budget for the project is 356.3 billion KRW, an increase of 10.4% (33.5 billion KRW) compared to last year's 322.8 billion KRW.

The maximum support amount per workplace is 1 billion KRW. The loan has a fixed annual interest rate of 1.5%, with a 3-year grace period and a 7-year installment repayment plan.

Eligible applicants include workplaces subscribed to industrial accident compensation insurance and corporations or private institutions established for the purpose of industrial accident prevention. Priority support is given to high-risk workplaces with fewer than 50 employees that have weak financial conditions, as well as companies participating in vocational high school field training.

The agency plans to focus support particularly on three industries that accounted for 73.6% of machinery entrapment and fall fatal accidents in manufacturing from 2011 to 2020: machinery and equipment, metal and non-metallic mineral product manufacturing, chemical and rubber product manufacturing, and wood product and other product manufacturing industries.