Korean Specialty Construction Association Calls for Easing Serious Accident Act and Restoring Construction Industry Barriers

On the morning of the 9th, Yoon Hak-su, the chairman, is speaking at a press conference held at the Specialized Construction Hall in Sindebang-dong, Dongjak-gu, Seoul.

Specialized construction companies that actually carry out construction work at construction sites have voiced their difficulties in management due to government policies and regulations. They are demanding revisions such as the restoration of the comprehensive and specialized industry-specific construction system and the relaxation of punishment provisions under the Serious Accidents Punishment Act.

On the 9th, Yoon Hak-su, president of the Korea Specialty Contractors Association, met with reporters at the Specialty Construction Hall in Shindaebang-dong, Dongjak-gu, and said, "Due to the abolition of construction industry sector regulations, the construction industry is facing market confusion such as order polarization, and the construction industry itself is on the verge of collapse due to the entrenchment of unfairness."

Construction work has been ordered separately as specialized construction, which involves only a single industry, and comprehensive construction, which involves multiple industries. However, due to a legal amendment (2018), mutual business entry between the two sectors has been possible in the public sector since last year, and will be opened to the private sector starting this year. The government's reason for removing the barriers is to improve industrial productivity through competition and to reduce the multi-tier subcontracting structure.

Kim Young-hyun, head of the Construction Policy Division at the Specialty Contractors Association, said, "In reality, only severe order polarization is occurring." It is easy for comprehensive construction companies to enter the specialized construction market, but relatively small specialized construction companies find it difficult to enter the comprehensive construction market. He insisted, "The existing order system centered on comprehensive and specialized sectors must be restored."

Unfair special contracts that follow subcontracting with large construction companies were identified as the most serious unfair practices experienced by lower-tier subcontractors. Unfair special contracts such as "All complaints must be handled by the lower-tier subcontractor" and "Additional construction costs cannot be requested under any circumstances" are common on site. Lim Ki-soon, head of the Management Policy Office at the Specialty Contractors Association, emphasized, "The legal effect of unfair special contracts should be nullified, and the Subcontracting Act should be amended to include unfair special contracts in punitive damages (triple compensation)."

The Serious Accidents Punishment Act is also a threat to specialized construction companies. In the case of small and medium-sized businesses, if imprisonment is imposed due to a serious accident, it can practically lead to business closure, causing social problems such as mass unemployment. Kim said, "It is necessary to reasonably relax the excessive punishment provisions for business owners and management officials."

He added, "About half of the accidents occur due to worker carelessness or negligence," and "To prevent industrial accidents, strengthening workers' safety awareness must be accompanied, so it is also necessary to establish provisions for workers' obligations and penalties for violations."

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