Two Weeks Before the Serious Accident Punishment Act, Gwangju Accident... Labor Calls for "Stricter Law"

No Similar Regulations Like Sanan Act and Geonsan Act
'Impact on Management' Is the Distinctive Feature of the Serious Accident Punishment Act

Labor Groups Emphasize "Strict Punishment for Original Contractors' Management"
Maintain Position Advocating for 'Serious Accident' Corporate Punishment Law

Government's Explanation That 'Purpose Is to Expand Safety and Health Management System' Falls Flat
Companies Say "Management Uncertainty Increases, Doubts on Accident Reduction"

HDC Hyundai Development Company site office at the construction accident site in Hwajeong-dong, Gwangju. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] As the construction accident at Hwajeong-dong, Seo-gu, Gwangju draws social attention, labor groups have come forward demanding stronger punishment laws related to the incident. Although the accident occurred before the enforcement date of the Serious Accident Punishment Act on the 27th, criticism is pouring in that it happened due to negligence by large corporations such as the construction company HDC Hyundai Development Company.

On the day after the accident, the 12th, the Korean Confederation of Trade Unions (KCTU) issued a statement titled "What collapsed was not the apartment exterior wall but the greed of construction conglomerates." In the statement, KCTU said, "We will actively push for the complete revision of the Serious Accident Punishment Act, which is about to be enforced, and the enactment of a special construction safety law to ensure workplaces where people do not die or get injured while working." Since they had initially argued that a Serious Accident 'Corporate' Punishment Act, not just a Serious Accident Punishment Act, should be created, they insisted that the law must be enforced directly against the heads or CEOs of companies.

They argued with the logic that "the main culprit of the accident is the prime contractor HDC Hyundai Development Company, and providing the culprit is a crime." The KCTU statement said, "This is a typical criminal act of forcing an abnormal and excessive shortening of the construction period for corporate profits," "We will punish HDC Hyundai Development Company, which pushed for an excessive shortening of the construction period, with the maximum penalty prescribed by law as a warning to all," and "We will make construction conglomerates, who are blinded by profits and repeatedly commit illegal and illicit acts, a negative example."

The Gwangju accident is drawing attention because most industrial accident fatalities occur at construction sites. The law is inevitably enforced mainly against 'large construction companies.' Since the Serious Accident Punishment Act will be enforced on the 27th, it is unlikely that the management of HDC Hyundai Development Company will be directly punished. Even without the Serious Accident Punishment Act, related regulations such as the Industrial Safety and Health Act, the Framework Act on the Construction Industry by the Ministry of Land, Infrastructure and Transport, and the Construction Technology Promotion Act are sufficiently in place. According to the Framework Act on the Construction Industry, a business suspension of up to one year can be imposed, but the consensus is that the likelihood is low. Under the Industrial Safety and Health Act, a business suspension can be imposed on the company within six months of a serious accident occurrence.

However, there is a growing voice that strengthening punishment for individuals rather than corporations is more realistic, and that the management of the prime contractor must be disciplined. They argue that the legal provisions allowing "up to 10 years imprisonment or a fine of up to 100 million won" must be enforced. Under the Industrial Safety and Health Act and construction law system, mainly site managers and subcontractor employees have been punished. For this reason, if the management of the prime contractor is not directly disciplined, the purpose of the Serious Accident Punishment Act is expected to be diluted for the time being.

However, even after the enforcement of the Serious Accident Punishment Act, it is expected to take considerable time before punishment extends to the management of large prime contractors. To punish, the management must be a registered executive, it must be clear that they failed to fulfill the legal obligation to establish a safety and health management system including budget and organizational personnel, and multiple deaths or injuries must have occurred from the same accident cause. The Ministry of Employment and Labor has already distributed industry-specific self-inspection checklists, and last year major companies such as Taeyoung Construction announced management guidelines to strengthen safety and health management systems, so there is an opinion that it is uncertain whether the law can judge them for "failure to fulfill the obligation to establish the system."

Currently, there are no regulations to strictly punish corporations or responsible persons even if a specific company causes repeated accidents. Because of this, the government argues that "even if CEO punishment is not reached, it will be meaningful in promoting the spread of corporate safety and health management system establishment," while companies argue the exact opposite, saying "management risks will greatly increase, and it is doubtful whether industrial accident deaths at subcontractors nationwide will decrease."

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