Why IBK Industrial Bank of Korea Received an 'Insufficient' Public Institution Safety Rating for Two Consecutive Years

Included in Assessment After 2023 Subcontractor Fatality
Lack of Industrial Accident Response Experience Due to Financial Institution Nature... Criticized for Inadequate Safety Management System
Ministry of Economy and Finance: "Assessment Goes

IBK Industrial Bank of Korea received a Grade 4 (Insufficient) rating for the second consecutive year in the public institution safety management grade assessment. The bank was criticized for its inadequate establishment of a safety management system, as it has limited experience responding to industrial accidents due to the nature of its business as a financial institution. IBK Industrial Bank of Korea was included in the safety management assessment after a fatal accident occurred at a subcontracted construction site in 2023.

According to the financial industry on May 7, IBK Industrial Bank of Korea received a Grade 4 (Insufficient) rating in the “2025 Public Institution Safety Management Grade Assessment” conducted by the Public Institution Management Committee under the Ministry of Economy and Finance. Following last year's preliminary assessment in which IBK Industrial Bank of Korea was also rated as Grade 4, the bank has received the same result for two consecutive years.

The Public Institution Safety Management Grading System is a comprehensive evaluation system that assesses the safety capabilities, standards, and performance of public institutions where safety management is crucial, such as workplaces, construction sites, facilities, and research centers. The grades range from Grade 1 (Excellent) to Grade 5 (Very Insufficient), with assessment criteria covering safety capabilities (300 points), safety standards (350 points), and safety performance (350 points). A Grade 4 rating, which IBK Industrial Bank of Korea received, indicates that while there is participation centered on the safety organization, the safety awareness among those in charge is low, and both employee participation and on-site safety activities are lacking.

In principle, the safety management grade assessment targets only public enterprises and quasi-governmental institutions where safety management is of high importance. However, other public institutions that have experienced major industrial accidents or fatalities within the past five years are designated as “priority management institutions” and are included in the assessment. As a result of a fatal accident involving a subcontractor worker at a data center construction site in 2023, IBK Industrial Bank of Korea, classified as an “other public institution,” was designated as a priority management institution. Accordingly, after a preliminary review in 2024, the bank underwent the main assessment last year. Other financial public institutions such as Korea Development Bank and the Export-Import Bank of Korea were excluded from the assessment, as they have had no fatal accidents in the past five years.

The Public Institution Management Committee evaluated that IBK Industrial Bank of Korea lacked an overall system to prevent safety accidents. An official from the Ministry of Economy and Finance stated, “Institutions with high accident risks such as LH (Korea Land & Housing Corporation) or KORAIL (Korea Railroad Corporation) have established relatively robust safety response systems and regulations based on years of experience. In contrast, IBK Industrial Bank of Korea was included in the assessment due to an unexpected accident given its characteristics as a financial institution, and thus, its preparation of a safety management system was insufficient.”

The official continued, “The safety management grade assessment comprehensively evaluates safety capabilities, current safety standards, and actual safety performance, such as fatal accidents. The evaluation examines how well the institution has established safety-related systems and leadership, the organization’s response capabilities, on-site safety levels, and whether there have been any major accidents, all in a step-by-step manner.” He added, “A fatal accident does not automatically result in an insufficient rating; since this system is designed to help establish a safety culture, various factors are considered in the final judgment.”

A representative from IBK Industrial Bank of Korea stated, “To strengthen safety management, we reinforced our dedicated safety organization and workforce in July 2024. We are committed to making safety the top management priority and will continue to strive for ongoing improvements in our safety standards.”

However, since IBK Industrial Bank of Korea is classified as an “other public institution,” this assessment does not directly affect its official management evaluation. For public enterprises and quasi-governmental institutions, the safety management grade results are reflected in the public institution management evaluation, whereas for other public institutions like IBK Industrial Bank of Korea, a separate management assessment is conducted by the Financial Services Commission, which is the supervising ministry.

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