Occupational Safety and Health Act Imposing Fines of up to 5% of Operating Profit on Companies with Repeated Industrial Fatalities Passes Environment and Labor Committee

Pushed Through Under Democratic Party Leadership
Authority to Request Deregistration of Construction Firms with Repeated Serious Accidents

An amendment to the Occupational Safety and Health Act that would allow the government to impose fines on companies where three or more workers die in industrial accidents in a single year passed the plenary session of the National Assembly’s Environment and Labor Committee on February 12.

At the subcommittee and plenary session of the Environment and Labor Committee held in succession that day, the amendment to the Occupational Safety and Health Act was passed under the leadership of the Democratic Party of Korea. The People Power Party did not take part in the vote.

The amendment stipulates that, if three or more workers die in one year due to industrial accidents caused by violations of safety and health measures, the company may be fined up to 5% of its operating profit. Even in cases such as public institutions where operating profit is not clearly defined, fines of up to 3 billion won may be imposed. By adding a fine provision to the existing penalties of fines and imprisonment, the amendment aims to strengthen the enforceability of compliance with safety and health rules.

Yonhap News Agency

In addition, a provision was passed that allows the Ministry of Employment and Labor to request relevant ministries to cancel the registration of construction companies where serious accidents, including fatal accidents, occur repeatedly. If a company has received business suspension twice in the last three years and another reason for a suspension request arises, it will be designated as subject to registration cancellation. Once its registration is canceled, the construction company will be barred from all business activities, including new projects, winning contracts, and subcontracting.

The employer’s obligation to suspend work has been further strengthened, and workers’ right to request a work stoppage has also been expanded. In addition, the requirements for the Minister of Employment and Labor to issue a work-stoppage order have been eased. Worker representatives and honorary industrial safety inspectors may request a work stoppage if there is an imminent danger, and subcontracted workers may also request a work stoppage from the prime contractor.

The amendment also establishes the legal basis for the “Safe Workplace Reporting Reward System,” for which this year’s budget has been allocated.

Kim Hyeongdong, the People Power Party’s Environment and Labor Committee secretary, expressed regret over the way the bill was pushed through, saying, “Can a measure premised on punishment really prevent industrial accidents in a substantial and effective way?” and “I asked that preventive measures also be prepared together, but it was like ‘reading the scriptures to a cow’.”

Kim Jooyoung, the Democratic Party’s Environment and Labor Committee secretary, said, “(The purpose of the amendment is) to ensure that there are no workers who say to their families, ‘I’ll be back safely,’ when leaving for work in the morning but then fail to return home in the evening,” and expressed regret over the People Power Party’s decision not to participate in the vote.

Minister of Employment and Labor Kim Younghoon said, “The government has announced a comprehensive plan for labor safety and is making every effort to eradicate industrial accidents at worksites,” adding, “The bill passed this time will provide institutional support so that people can work safely in their workplaces.”

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