The Serious Accident Punishment Act's Fate Divided After General Election... SMEs on Edge Over Outcome

Possibility of 2-Year Postponement of Serious Accident Punishment Act Changes After General Election Results

The small and medium-sized enterprise (SME) sector is closely watching the results of the 22nd National Assembly election. Depending on which party secures the majority, the possibility of a two-year postponement of the Serious Accident Punishment Act for workplaces with fewer than 50 employees could change. If the People Power Party (PPP) gains the upper hand, the likelihood of reconsidering the postponement increases, as they have pledged to reintroduce the delay as an election promise. Conversely, if the Democratic Party of Korea (DPK) becomes the majority, difficulties are expected.

Kim Ki-moon, Chairman of the Korea Federation of SMEs, is speaking about the Serious Accidents Punishment Act at the New Year's press conference held on February 22 at the Federation of SMEs in Yeongdeungpo-gu, Seoul. Photo by Jo Yong-jun jun21@

The Serious Accident Punishment Act stipulates that in the event of a serious accident such as a fatality, the business owner or management responsible can be sentenced to imprisonment for more than one year or fined up to 1 billion KRW. It was implemented starting January 27, 2022, for workplaces with 50 or more employees, and from January 27 of this year, it has applied to workplaces with fewer than 50 employees. The SME sector has demanded a two-year postponement, citing reasons such as the closure of small-scale businesses that are less prepared and the loss of jobs for workers. The Korea Federation of SMEs has been holding relay rallies nationwide, and on the 1st, filed a constitutional complaint to determine the constitutionality of the Serious Accident Punishment Act.

The variable is the election results on the 10th. The industry expects that if the PPP secures the majority, the possibility of postponing the Serious Accident Punishment Act will increase. Reviewing the election pledges announced by both parties on the 9th, the PPP emphasizes re-pushing a two-year postponement of the Act’s application to workplaces with fewer than 50 employees under the banner of "supporting the revitalization of small business owners and SMEs." They also added that this is to prevent confusion in industrial sites such as small businesses and micro-enterprises that are still unprepared.

The PPP has advocated for postponing the Serious Accident Punishment Act since last year. Im Eui-ja, the ruling party’s secretary of the National Assembly’s Environment and Labor Committee, has introduced a bill to postpone the expanded application of the Act by two years, and Yoon Jae-ok, the PPP floor leader, stated in a February parliamentary negotiation group representative speech, “After winning the general election, we will revise the Serious Accident Punishment Act even if we have to do it alone.”

A representative of an SME said, “If the PPP comes out ahead, there is some hope that it might help us,” adding, “Since they are the ruling party, the relationship with the government might be better.” On January 1, Minister Oh Young-joo of the Ministry of SMEs and Startups, Minister Lee Jeong-sik of the Ministry of Employment and Labor, and Minister Park Sang-woo of the Ministry of Land, Infrastructure and Transport gathered in one place to urge the enactment of a bill to further postpone the application of the Serious Accident Punishment Act, showing that the government is also lending support.

The Korean Confederation of Trade Unions and the Life Safety Action held a nationwide simultaneous press conference near the Presidential Office in Yongsan-gu, Seoul, on January 26th to mark the second anniversary of the enforcement of the Serious Accidents Punishment Act. They are demanding strict enforcement of the Serious Accidents Punishment Act and an end to attempts to weaken the law. Photo by Jo Yongjun ju21@

On the other hand, if the DPK wins the majority, the industry’s desired two-year postponement seems unlikely. The DPK has rejected the amendment, stating that “the basic value of prioritizing workers’ life and safety in the industrial field must be upheld.” Their election pledge also emphasizes “establishing a labor safety and health system for all workers to prevent injuries or deaths at work.” Instead, they plan to expand the budget for industrial accident prevention in micro-businesses with fewer than 50 employees to 2 trillion KRW, focusing on risk assessment and improving the working environment.

Furthermore, the DPK maintains that postponing an already implemented law goes against principles. Hong Ik-pyo, the DPK floor leader, appeared on SBS’s “Kim Tae-hyun’s Political Show” on February 2 and explained, “The majority opinion was that postponing a law that has already been enforced is inconsistent with law and principles,” adding, “What is important is how safely workers can work, based on the fundamental values of respecting life and safety in our society.”

Political commentator Park Sang-byeong analyzed, “Since the DPK’s identity is centered on workers, it seems unlikely they would give that up,” and “Because they cannot ignore workers’ voices about risks in small construction sites and other places, the possibility of the DPK making concessions appears low.”

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