KOSHA and SGI Seoul Guarantee Sign Guarantee Insurance Agreement for Subsidy Support Project

The Korea Occupational Safety and Health Agency (KOSHA), under the Ministry of Employment and Labor, signed a business agreement with SGI Seoul Guarantee on the 14th at 11 a.m. on the 6th floor of the agency's headquarters to promote mutually organic and efficient guarantee operations for the effective management of subsidy support projects.

This business agreement is expected to help alleviate the financial burden on beneficiary workplaces when recovering subsidies for industrial accident prevention facility funds and also prevent financial leakage of national subsidies.

Since the amendment of the Industrial Safety and Health Act on November 19, 2021, KOSHA has been able to additionally collect penalty surcharges amounting to 2 to 5 times the subsidy amount when recovering subsidies due to cancellation of subsidy support decisions for national subsidy-supported workplaces.

Previously, the agency only required payment guarantees for the subsidies received by workplaces, but after the legal amendment, additional guarantees covering penalty surcharges up to 2 to 5 times the subsidy amount became necessary.

As a result, the insurance coverage amounts and basic insurance premium rates for beneficiary workplaces increased, thereby increasing the burden on business owners.

(From the third person on the left) Jin Chan-ho, Director of the Small and Medium Business Support Office at the Korea Occupational Safety and Health Agency, Lee Sang-gyu, Head of the Daegu-Ulsan-Gyeongbuk Headquarters at SGI Seoul Guarantee, and other officials signed a business agreement for the efficient operation of the Industrial Accident Prevention Facility Fund Subsidy Support Project.

Accordingly, the agency signed a business agreement with SGI Seoul Guarantee to reduce the insurance premium burden for subsidy-supported workplaces that must subscribe to insurance, and plans to review and promote special contracts for payment and defect (A/S) guarantees, customized product development for the agency, and dedicated service desks.

Director Ahn Jong-ju of KOSHA said, “Through this agreement, we hope to minimize the burden on subsidy-supported workplaces and help prevent financial leakage of national subsidies,” adding, “We will do our best to ensure that national subsidies are used smoothly to create safe workplaces.”

Since 2017, the agency has required small-scale workplaces with fewer than 50 employees, which are eligible for subsidies, to compulsorily submit ‘government and local government subsidy return payment guarantees’ when requesting confirmation of completion of subsidized facility investments.

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