SME Sector "Welcomes Shift from Punitive Measures for Serious Accidents to Autonomous Prevention System"

[Asia Economy Reporter Kwak Min-jae] The small and medium-sized enterprises (SME) sector has expressed a welcoming stance toward the government's decision to shift its major accident response policy from a post-regulation and punishment focus to an autonomous prevention system.

The Korea Federation of SMEs issued a statement on the 30th, saying, "We highly appreciate the government's recognition that there are limits to reducing major accidents through regulation and punishment alone, and its decision to shift the paradigm to an autonomy-centered prevention system."

It added, "Expanding support for high-risk SMEs and establishing a safety and health certification system for small-scale workplaces are expected to help reduce major accidents in SMEs, which lack financial resources and administrative capacity."

The Federation expressed concern, stating, "However, maintaining the strong punitive provisions of the Major Accident Punishment Act and the Industrial Safety and Health Act?laws that are unprecedented worldwide?while introducing new punitive regulations through mandatory risk assessments may rather strengthen labor regulations."

They argued that the mandatory risk assessment should be implemented gradually and carefully, alongside easing the punishment levels of the Major Accident Punishment Act or reorganizing the legal system by unifying the Major Accident Punishment Act and the Industrial Safety and Health Act.

Furthermore, they earnestly requested reconsideration of expanding the mandatory installation target of the SME Central Industrial Safety and Health Committee from workplaces with 100 or more employees to those with 30 or more, as this could further increase the administrative burden on small SMEs already struggling with financial and manpower shortages. They added, "To reduce major accidents, the government should promptly proceed with adjusting excessive laws (enforcement ordinances, etc.) and standards, such as safety and health standards, that are difficult to comply with in the field to better fit reality."

Finally, they stated, "It is necessary for the National Assembly, regardless of party lines, to ease the excessive punitive provisions of the Major Accident Punishment Act and the Industrial Safety and Health Act to a global standard level, as these provisions even dampen the management motivation of companies. Our SMEs will also do their best to help South Korea advance as a leader in industrial safety."

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