Economic Six Organizations Jointly Urge Postponement of Medium-Sized Business Act for Companies with Fewer Than 50 Employees

"Clearly Promise Not to Request Additional Grace Period After 2-Year Extension"

The Korea Federation of Small and Medium Business (Chairman Kim Ki-moon), along with the Korea Economic Association, Korea Employers Federation, Korea Chamber of Commerce and Industry, Korea International Trade Association, and Korea Federation of Medium-sized Enterprises, collectively known as the six economic organizations, issued a joint statement on the 3rd urging a two-year additional postponement of the application of the Serious Accidents Punishment Act to workplaces with fewer than 50 employees, scheduled for the 27th of this month.

Through the joint statement, the business community expressed "deep regret and a disheartening sentiment over the indefinite delay in discussions regarding the postponement of the Serious Accidents Punishment Act for workplaces with fewer than 50 employees," and stated, "if the law is enforced as it stands, penalties will be concentrated on small and medium-sized enterprises that are unprepared, raising significant concerns that the legislative intent of preventing serious accidents could be overshadowed by side effects such as business closures and worker unemployment."

Furthermore, the business community positively evaluated the government's 'Support Measures for Vulnerable Areas to Serious Accidents' announced on the 27th of last month, saying, "Comprehensive industrial safety inspections will be conducted across all workplaces with fewer than 50 employees, followed by tailored support linked accordingly, and the establishment of a joint safety manager support project, which was requested by both labor and management, among other effective measures have been reflected."

The business community continued, "Through this statement, we pledge that after a two-year extension of the postponement period for the Serious Accidents Punishment Act for workplaces with fewer than 50 employees, we will not request any further postponements and will cooperate to ensure that government measures are effectively implemented."

Additionally, the business community appealed, "We urge the National Assembly not to ignore the urgent realities faced by workplaces with fewer than 50 employees any longer and to promptly submit and begin discussions on the bill to postpone the Serious Accidents Punishment Act," adding, "if there are any shortcomings or points needing supplementation in the government support measures, we hope the National Assembly will initiate postponement discussions first and concurrently discuss improvements to the support measures during that process."

Moreover, the business community requested, "There are ongoing voices that the level of penalties is excessively high and the obligations are unclear, leaving much room for arbitrary interpretation even in workplaces with 50 or more employees where the law currently applies," and asked for consideration of institutional improvements that would enhance preventive effects while reasonably reducing the burden on businesses.

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