Ministry of Industry to Reduce Insurance Premiums for Industrial Facilities with Good Safety Management

The 27th Meeting of Ministers Concerned with National Issues
Discussion on 'Measures to Revitalize Industrial Facility Safety Management Using Insurance Systems'

Minister Lee Chang-yang of the Ministry of Trade, Industry and Energy is responding to questions from lawmakers at the plenary session of the Industry, Trade, Industry, and Small and Medium Venture Business Committee held at the National Assembly on the 5th. Photo by Hyunmin Kim kimhyun81@

The Ministry of Trade, Industry and Energy has decided to introduce incentive measures such as offering insurance premium discounts or exemptions from statutory inspections for facilities with excellent safety management. This aims to enhance the safety evaluation system to strengthen the autonomous safety management capabilities of industrial facilities.

On the 27th, the government discussed the "Measures to Revitalize Industrial Facility Safety Management Using Insurance Systems, etc." at the 27th Ministerial Meeting on National Issues chaired by Prime Minister Han Duck-soo.

Unlike advanced countries, Korea maintains a regulation-centered safety management system through government and public institutions, resulting in a high dependence on government-level management and supervision functions and a lack of incentives for autonomous safety management in the private sector. Accordingly, the government discussed plans to induce voluntary safety investments by companies by providing benefits to companies with excellent safety management, aiming to shift the paradigm from a public-centered to a private-led safety management system.

The government decided to supplement the safety evaluation system to comprehensively reflect environmental factors such as facility standards, aging, management status, and risk according to the target industrial facilities to improve their autonomous safety management capabilities. Additionally, by linking insurance systems with safety evaluation results in respective sectors, various benefits such as insurance premium discounts or exemptions/relaxations from statutory inspections will be provided to companies with excellent safety management. Conversely, if the evaluation results are insufficient, insurance premiums will be increased and statutory inspections strengthened.

Kang Kyung-sung, the 2nd Vice Minister of the Ministry of Trade, Industry and Energy, who attended the meeting, stated, "It is time to transition from a regulation-centered safety management system to an autonomous safety management system where the private sector plays a leading role as the main agent of safety management," adding, "The Ministry of Trade, Industry and Energy will proactively promote various supports for companies with excellent safety management."

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