Will the Serious Accident Punishment Act Be Eased... 'Labor vs. Business' Power Struggle

Business circles expect easing of Serious Accidents Punishment Act with Yoon's election
Labor groups counter with calls for expanded application
Immediate revision unlikely... National Assembly dominated by Democratic Party
Prosecutors likely to be cautious in indictments... keenly watching first indictment

President-elect Yoon Seok-yeol is announcing the appointment results of the Presidential Transition Committee chairman and vice-chairman at the People Power Party Central Party Office in Yeouido, Seoul, on the afternoon of the 13th. Photo by National Assembly Press Corps

As President-elect Yoon Suk-yeol's inauguration approaches, conflicts between the business community and labor groups over the "Serious Accidents Punishment Act (Serious Accidents Punishment Law)" are intensifying. While companies prioritize easing the Serious Accidents Punishment Law as the top task for the next administration to revitalize the economy, labor groups are demanding its expanded application and are taking a confrontational stance. Although President-elect Yoon leans toward pro-business institutional reforms, with the Democratic Party still holding 172 seats and strong opposition from labor groups, it is analyzed that labor-management and labor-government conflicts will continue from the early days of his term.

According to the business community on the 14th, the Federation of Korean Industries identified easing the Serious Accidents Punishment Law as the top economic law requiring improvement in a survey on "Corporate Opinions on Next Government's Economic and Industrial Policies." The business sector has been urging for a delay or revision of the system, citing unclear regulatory scope and responsibility even before the law's enforcement. While the Moon Jae-in administration, which strongly pushed for reducing industrial accidents, did not give much weight to these remarks, pressure has been increasing significantly since the presidential election. Industries directly affected by the law, such as construction, exhibition industries, and small and medium enterprises, have recently been calling for easing the regulations one after another.

On the other hand, labor groups argue that the law's application scope should be expanded to workplaces with fewer than five employees and that the principle of presumption of causation should be introduced to strengthen effectiveness. The principle of presumption of causation assumes that the management is responsible for serious accidents occurring repeatedly due to violations of obligations, requiring management to prove their innocence, which would increase the burden on companies if introduced. Labor groups plan to emphasize the necessity of expanding the Serious Accidents Punishment Law and raising the minimum wage through nationwide labor rallies and general strikes after the new government takes office in May.

President-elect Yoon has not explicitly advocated for easing the Serious Accidents Punishment Law but is highly likely to initiate reform efforts later. At a meeting held in Changwon, Gyeongnam, in January, he expressed concerns by stating, "If the Serious Accidents Punishment Law makes it difficult for foreign capital to invest domestically, we can listen to industry opinions and consider amendments." During a TV debate on the 2nd, he also mentioned, "(The detention requirements for management) are somewhat ambiguous," adding, "There could be legal issues when criminally prosecuting."

However, revising the law requires legislative amendments, making it difficult to push forward until the 2024 general election, where the ruling party holds a minority. Within the Democratic Party, which holds 172 seats, lawmakers Yoon Jun-byeong, Kang Min-jung, Kim Young-bae, and Lee Tan-hee have already proposed bills to strengthen the law's application.

Accordingly, the industry is paying close attention to the first prosecution of ongoing serious accident cases. Although the Ministry of Employment and Labor is conducting investigations, prosecutions are carried out by the prosecution, so President-elect Yoon's intentions may be somewhat reflected in the future. If prosecutions occur at a lower level than expected, labor groups are expected to strongly oppose it. A lawyer from a major law firm specializing in serious accidents explained, "The prosecution is likely to be cautious about indictments since they need to secure convictions in court."

While President-elect Yoon pointed out the ambiguity of detention requirements, the Ministry of Employment and Labor maintains that detention and prosecution are possible if necessary. A ministry official stated, "If there are concerns about evidence tampering, we can request detention warrants," adding, "Since the current bill was created through bipartisan agreement, it is still too early to mention any supplementation."

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