First Day of Serious Accident Punishment Act... Business Community Unanimously Calls for "Supplementary Legislation Needed"

Korea Employers Federation: "All Responsibility Should Not Be Placed Solely on Managers"
KIAF: "Presidential Candidates Must Amend Bills Within One Year"

Sohn Kyung-shik, Chairman of the Korea Employers Federation / Photo by Hyunmin Kim kimhyun81@

[Asia Economy Reporter Kiho Sung] As the “Serious Accidents Punishment Act (Act on the Punishment of Serious Accidents, etc.)”, which punishes business owners or management officials if safety and health management negligence leads to fatal accidents, came into effect on the 27th, the business community has expressed great concern. The business community has collectively announced that not only supplementary legislation but also prompt alternative measures from presidential candidates of both ruling and opposition parties are urgently needed.

According to the business community, the Korea Employers Federation (KEF) stated in its “Business Community Position on the Enforcement of the Serious Accidents Punishment Act” that "the business community also actively agrees that corporate safety management capabilities need to be further strengthened to eradicate serious accidents that are widespread in our society." However, it added, "the current Serious Accidents Punishment Act imposes excessive levels of punishment and has unclear legal provisions, making it a reality that even companies making great efforts to comply with obligations are not free from the fear of punishment."

Enacted following the 2020 Icheon logistics warehouse fire, the Serious Accidents Punishment Act imposes overlapping penalties including imprisonment of more than one year for business owners in the event of serious accidents including fatalities, fines on corporations, and punitive damages. However, the business community views the Serious Accidents Punishment Act as “punishment for management responsibility,” since the existing Industrial Safety and Health Act already sets regulations for preventing most accidents.

Jung Manki, Chairman of the Korea Industrial Federation Forum / Photo by Mun Honam munonam@

The Korea Industrial Alliance Forum (KIAF) also pointed out in a statement on the same day, "According to the Ministry of Employment and Labor, there were 671 workplaces with serious accidents under the Industrial Safety and Health Act in 2020, with small-scale workplaces with fewer than 50 employees accounting for 80% of these, raising particular concerns about the contraction of small businesses."

It continued, "According to a survey by the Korea Federation of SMEs, the main cause of industrial accidents is overwhelmingly high at 75.6% due to workers’ carelessness and non-compliance with guidelines, so safety standards compliance obligations should be imposed not only on business owners and management but also on workers to strengthen industrial safety."

The business community has voiced a unified call for supplementation, citing serious side effects of the Serious Accidents Punishment Act. KIAF explained that even before the act’s enforcement, various side effects and burdens are increasing in industrial sites, stating, "Many construction companies have suspended all construction work at their sites from today until February 6, which includes the Lunar New Year holiday, to avoid becoming the first targets of punishment under the Serious Accidents Punishment Act." KIAF claims that the burden of costs for safety-related litigation preparations, such as external consulting for legal responses and advisory contracts with large law firms, is increasing.

KEF urged, "The business community demands that the problematic Serious Accidents Punishment Act, which holds only management responsible for industrial accidents and imposes excessive penalties due to unclear obligations, be reasonably amended through legislative supplementation as soon as possible." It added, "Since trying to solve serious accident issues through corporate and management punishment is not a fundamental solution to reducing industrial accidents, our country’s industrial safety policy should quickly shift to a prevention-centered approach like advanced foreign countries to expand corporate safety investments and raise workers’ safety awareness."

KIAF stated, "We will propose amendments to the government and the National Assembly," and "especially plan to urge presidential candidates to pledge supplementary legislation within one year after the law’s enforcement."

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