Sampyo Industry CEO Faces Possible 'First Punishment Under Serious Accident Act'... What Is Key to the Investigation?

Two Deaths Last Year... Intensive Investigation Inevitable
If Safety and Health Management Obligations Were Met, Punishment Could Be Avoided
100% Compliance May Be Difficult Due to Comprehensive Regulations

On the 30th, the second day after the Yangju quarry collapse accident, Sampo Seongsu Ready-Mix Concrete Plant located in Seongdong-gu, Seoul. [Image source=Yonhap News]

A fatal accident involving workers occurred at the construction site of Sampyo Industrial, increasing the likelihood of the first prosecution under the Serious Accidents Punishment Act. Since Sampyo Industrial experienced two fatal accidents last year as well, the Ministry of Employment and Labor and the police are expected to conduct a rigorous investigation. The industry is closely watching whether the CEO of Sampyo Industrial will face actual criminal charges due to this accident.

According to the government on the 30th, the Ministry of Employment and Labor has officially launched an investigation into Sampyo Industrial's alleged violation of the Serious Accidents Punishment Act. At around 10:08 a.m. the previous day, at the quarry site below Sampyo Industrial's Yangju plant in Yangju, Gyeonggi Province, soil collapsed, burying three workers operating two drilling machines and one excavator under approximately 20 meters of soil. So far, two workers have been found dead, and search operations for one missing person are ongoing.

The core of the Serious Accidents Punishment Act is to impose criminal penalties on management officials when one or more deaths or two or more injuries requiring treatment for over six months occur. Sampyo Industrial, with approximately 930 regular employees, is subject to this law. Although the fate of the one missing person has not yet been confirmed, since two deaths have already been confirmed, this accident clearly qualifies as a major industrial accident.

Will Sampyo Industrial's CEO Face Punishment?

The Ministry of Employment and Labor, the main agency responsible for the Serious Accidents Punishment Act, formed a Central Industrial Accident Response Headquarters after the accident and dispatched eight labor inspectors to the accident site to begin an investigation. Sampyo Industrial is a frequent offender of major industrial accidents, having experienced two worker deaths last year at its Pocheon plant and Seongsu factory. The government is reportedly prepared to conduct a thorough investigation, including a possible search and seizure of the company’s headquarters if necessary.

Minister of Employment and Labor Ahn Kyung-duk stated, "It is devastating that a large-scale fatal accident occurred again at a company that experienced two industrial accident deaths last year," adding, "We will thoroughly investigate the responsibilities of management officials under the Serious Accidents Punishment Act, including the establishment of safety and health management systems and the obligation to establish recurrence prevention measures, through a swift investigation."

The key issue is whether the management officials at the site where the major industrial accident occurred fulfilled their safety obligations. According to the law, business owners or management officials must take measures to ensure safety, including ▲establishing and implementing safety and health management systems necessary for accident prevention ▲establishing and implementing accident prevention measures ▲complying with improvement and correction orders issued by central administrative agencies or local governments under relevant laws ▲taking necessary actions to fulfill obligations under safety and health-related laws.

If these obligations were neglected, management officials could face imprisonment for more than one year or fines up to 1 billion KRW. The government will also verify whether Sampyo Industrial identified risk factors from on-site workers in advance and fulfilled its obligation to make appropriate improvements. Since the obligation to establish safety and health management systems is somewhat broadly defined, further investigation is needed to clearly determine compliance.

On the second day of the Yangju quarry collapse accident on the 30th, trucks are busily moving at the entrance of Sampyo Industrial stone quarry in Eunhyeon-myeon, Yangju-si, Gyeonggi-do. [Image source=Yonhap News]

"Did They Fulfill Safety Obligations?"... The Key is Proof

If all safety obligations stipulated in the enforcement decree of the Serious Accidents Punishment Act were fulfilled, the management officials of Sampyo Industrial could avoid punishment. However, when examining each obligation in detail, there could be over 100 specific requirements, making perfect compliance nearly impossible, according to many opinions. Even if the Ministry of Employment and Labor concludes the investigation with a prosecution recommendation, the court’s judgment may differ later, so it is expected to take considerable time before a final decision on punishment is reached.

Sampyo Industrial is a company that has grown through ready-mixed concrete and aggregate businesses, owning factories across the Seoul metropolitan area including Seongsu and Pungnap in Seoul, and Gwangju, Yangju, and Yeoncheon in Gyeonggi Province. In addition to the quarry in Yangju, where the accident occurred, it also produces aggregates in quarries in Incheon and Paju. According to the company’s audit report, as of 2020, its sales were approximately 653.5 billion KRW, with an operating profit of 10.93 billion KRW.

Currently, President Yoon In-gon leads the ready-mixed concrete division, and President Lee Jong-shin heads the aggregate division as CEOs. If the Serious Accidents Punishment Act applies, the CEOs could face criminal charges. On the previous day, Sampyo Industrial issued a statement under CEO Lee Jong-shin’s name, saying, "We will concentrate all our capabilities to closely cooperate with relevant agencies, thoroughly manage safety at the site, and rescue the buried workers," and "We will take maximum measures to prevent recurrence."

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