61% of SMEs Say "Management Burden Has Increased After Implementation of Serious Accident Punishment Act"

Main-Biz Association Announces Results of Serious Accident Punishment Act Survey

A survey found that 6 out of 10 small and medium-sized enterprises (SMEs) are feeling an increased management burden due to the implementation of the Serious Accident Punishment Act.

The Main-Biz Association (Korea Management Innovation Association for SMEs) announced the results of the 'Serious Accident Punishment Act Awareness and Response Status Survey' on December 9. The survey was conducted from October 24 to 31 among 369 Main-Biz companies. According to the results, 95.9% of companies responded that they are aware of the Serious Accident Punishment Act itself, but less than half (47.4%) said they understand the specific mandatory provisions, indicating a significant gap between awareness of the law and actual capacity for implementation.

'Serious Accident Punishment Act Awareness and Response Status Survey' Result Image. Main-Biz Association

After the law came into effect, 61.2% of companies reported that their management burden had increased. In particular, the burden was greater for micro-enterprises and non-manufacturing businesses, and negative impacts such as more conservative management, reduced investment, and increased judicial risks were also identified.

Only 7.6% of companies had both a dedicated safety and health organization and specialized personnel, with most either having only a basic manual or assigning existing staff to handle safety work in addition to their regular duties.

Furthermore, 74.6% of companies said they are unable to reflect safety management costs in their supply prices, highlighting the structural limitations of cost burdens. The greatest concern regarding non-compliance with legal obligations was the criminal liability of the CEO (64.0%).

Companies cited the most needed support as financial assistance for safety and health investments (66.4%), as well as tax benefits and customized consulting support.

'Serious Accident Punishment Act Awareness and Response Status Survey' Result Image. Main-Biz Association

The association stated, "The survey results confirm that it is difficult for SMEs to even establish the minimum safety management systems required to comply with the law," and emphasized, "There is an urgent need for rational institutional improvements that take into account the size and conditions of companies." The association also pointed out that the current system, which applies uniform standards centered on large corporations, imposes an excessive burden on SMEs that lack sufficient personnel and budgets.

The association proposed five key directions for improvement that reflect the realities of SMEs: ▲Introduction of customized and differentiated regulatory systems ▲Establishment of a package-type safety support system ▲Clarification of the responsibilities and roles of management ▲Transition to a prevention-centered safety ecosystem ▲Enhancement of safety capabilities between primary contractors and subcontractors.

The association added, "Meaningful results in preventing serious accidents begin with the feasibility of implementation at the field level," and pledged to continue ongoing research, analysis, and support activities so that the voices of SMEs are adequately reflected in policy.

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