Support of up to 70 million KRW for Replacing Hazardous Machinery in Small and Medium Enterprises

Ministry of Employment and Labor & Korea Occupational Safety and Health Agency Promote '2022 Safety Investment Innovation Project'

50% Support for Safety Investment Costs in Small and Medium Workplaces
Up to 100 Million KRW Support for Hazardous Process Improvement Costs

On November 24, 2020, in front of the Democratic Party of Korea headquarters in Yeouido, Seoul, a focused rally urging the enactment of the Serious Accidents Punishment Act was held by the Korean Confederation of Trade Unions (KCTU). Portraits of 99 workers who died from industrial accidents were placed on display. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] On the 19th, the government announced that it will promote the 'Safety Investment Innovation Project,' which supports companies with up to 70 million KRW for replacing hazardous machinery to reduce industrial accidents.

The Ministry of Employment and Labor and the Korea Occupational Safety and Health Agency announced that they will invest about 320 billion KRW in this year's innovation project to replace approximately 4,300 hazardous machines and support the improvement of hazardous and aging processes at about 1,500 workplaces.

This year, the support targets for replacing hazardous machinery and equipment have been expanded from 3 types to 9 types. Six additional types of machinery and equipment subject to safety inspections that have been aged over 30 years, such as presses, shears, and cranes, were added. However, tower cranes were excluded.

The maximum support amount was reduced from 100 million KRW to 70 million KRW. The Ministry of Employment and Labor explained that this decision was made considering the average support level last year.

For the improvement support of aging hazardous processes, three industries were added: chemical and rubber product manufacturing, machinery and metal and non-metallic mineral product manufacturing, and wood product and other product manufacturing. These high-risk industries for manufacturing-related entrapment and fall fatal accidents (total 73.6) were added to the existing 'three major processes' of casting, heat treatment, and surface treatment.

The support limit for hazardous process improvement will be maintained at a maximum of 100 million KRW (50% of the required cost), as before.

The project will apply support methods such as leasing, installment payments, and subsidies, considering the financial capacity of small and medium-sized business owners. Hazardous process improvements can receive industrial accident prevention facility fund loans. The loan support will be provided at an interest rate of 1.5%, with a 3-year grace period and a 7-year repayment term.

Business owners who wish to receive support can apply through the innovation project website from the 20th until the end of April. The agency plans to select support targets sequentially each month based on selection criteria.

Kwon Kisub, Director of the Occupational Safety and Health Headquarters, said, "Ahead of the enforcement of the Serious Accident Punishment Act, the Ministry of Employment and Labor and the agency will significantly expand financial and technical support to strengthen the safety and health management capabilities of small and medium-sized workplaces. We expect that replacing hazardous machinery and equipment and improving aging and hazardous processes will ensure the safety of workers at small and medium-sized workplaces and enhance corporate competitiveness."

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