Tightening Control Over Former Supervisors Under Serious Accident Punishment Act... From Construction Company Executives to Nationwide Logistics Warehouses

A concentrated rally urging the enactment of the Serious Accidents Punishment Act, hosted by the Korean Confederation of Trade Unions (KCTU), held on November 24 last year in front of the Democratic Party headquarters in Yeongdeungpo-gu, Seoul. The law passed the National Assembly plenary session on January 8 under the new name "Serious Accidents Punishment Act." Labor groups criticize the law for being weakened, while business circles argue that even this is excessive. Photo by Hyunmin Kim kimhyun81@

[Sejong=Asia Economy Reporter Moon Chaeseok] The government is tightening industrial safety supervision, focusing on the construction industry. This is because it must achieve a groundbreaking reduction in industrial accident fatalities nationwide, especially at construction sites where the most industrial accident deaths occur, ahead of the enforcement of the Serious Accidents Punishment Act scheduled for next year. Contrary to the Moon Jae-in administration’s national agenda goal of drastically reducing industrial accident deaths to around 500 annually, last year saw 882 deaths, an increase of 27 from 855 the previous year. For this reason, the government intends to send a message that "if safety measures are not properly established, management can also be punished." Starting with Taeyoung Construction, inspections have been conducted at Daewoo Construction headquarters and affiliated construction sites.

On the 26th of last month, following the first investigation of Taeyoung Construction since the enforcement of the Serious Accidents Punishment Act earlier this year, the government strongly recommended that the company "rebuild its safety and health management system at the headquarters level." The inspection results pointed out that 'safety' was missing from the management strategy, calling for a fundamental overhaul. The government noted, "There is no 'safety and health' item among the six key strategies in Taeyoung Construction’s mid- to long-term management strategy through 2023." It added, "There is a lack of interest, strategy, and activities related to safety and health in the CEO’s actions and management strategy," and judged that "a corporate culture prioritizing cost and quality over safety has been formed." During the inspection, 59 violations of the Industrial Safety and Health Act were identified across 35 sites, and fines totaling 204.5 million KRW were imposed. The government stated, "We recommended Taeyoung Construction to prepare effective improvement plans, including increasing safety management personnel at sites, and once the plans are established, the Seoul Regional Employment and Labor Office and the Korea Occupational Safety and Health Agency will conduct periodic inspections to verify compliance."

On the 28th of last month, exactly one year after the fire accident at the Icheon Hanix Express logistics center that claimed 38 workers’ lives, Minister of Employment and Labor Lee Jae-gap visited a new logistics factory construction site. Minister Lee emphasized, "With the recent increase in online shopping, the construction of large-scale refrigerated and logistics warehouses is also increasing, raising the possibility of major accidents such as fires and explosions during the construction process," and stressed, "To prevent a recurrence of the tragedy that happened a year ago, clients, contractors, and subcontractors must cooperate to strengthen safety management." He also announced that a two-week nationwide emergency inspection on fire prevention and COVID-19 quarantine at refrigerated and logistics warehouse construction sites will be conducted by mid-month. Local offices and the agency will conduct unannounced checks on the implementation of hazardous risk prevention plans, impose fines for violations, and enforce corrective measures. If corrective measures are ignored, work stoppage and legal action will follow.

There is clear consensus that high-intensity measures to reduce industrial accident fatalities must be prepared, even aside from achieving national agenda goals. However, the possibility of "criminal punishment of management," unannounced inspections, and increased government-led special supervision nationwide have become points of controversy. Since the government announced it will reduce industrial accident deaths by more than 20% from last year’s 882 fatalities, this high-intensity supervision stance is expected to continue for the time being. On the 9th of last month, Deputy Minister of Employment and Labor Park Hwajin held a joint meeting with eight regional labor office chiefs and eight regional heads of the Occupational Safety and Health Agency, urging, "Set reducing industrial accident deaths by more than 20% as the top priority of your institution and devote all efforts," and requested, "Closely supervise high-risk workplaces where fatalities have occurred."