Business Community Warns of "Unrealistic Fines" and Confusion Over Occupational Safety and Health Act

Occupational Safety and Health Act amendment passes National Assembly Climate, Energy, Environment and Labor Committee
Fines of up to 5% of operating profit for fatal workplace accidents

As the amendment to the Occupational Safety and Health Act, which imposes fines when fatal accidents occur at workplaces, passed the National Assembly’s Climate, Energy, Environment and Labor Committee on the 12th, the business community voiced concern. The amendment stipulates fines of up to 5% of operating profit.

The Korea Employers Federation issued a statement the same day, saying, "The level of economic sanctions is unrealistically high, so in the case of large-scale workplaces, astronomical costs could be imposed," and added, "In particular, for small and medium-sized enterprises whose business conditions are not good, there are concerns that this will have a serious impact on corporate management."

It went on to say, "The Serious Accidents Punishment Act, which strictly imposes criminal penalties on managers (CEOs), is already in effect, but in a situation where there is no effect in reducing industrial accidents, we cannot help but question whether introducing yet another fine system that imposes overlapping economic sanctions will really help prevent industrial accidents," adding, "Given that fine systems are generally operated with the aim of recovering illegal gains obtained through violations of the law, this is not in line with the original purpose of the system."

The Korea Employers Federation also stated, "The provision in the bill that relaxes the conditions under which workers can exercise their right to stop work is also worrisome because the criteria are vague, which could lead to increased labor-management disputes and legal conflicts over the scope of work stoppages and cause confusion at sites," and added, "While we agree on the need to strengthen corporate responsibility to prevent serious accidents and create safe workplaces, we must point out that accident prevention has its limits under punishment-centered policies such as those in place now."

It then said, "We ask the National Assembly and the government to refrain from focusing on ex post punishment and sanctions and instead concentrate their efforts on preparing preventive measures in advance."

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