Workplaces Paying Less Than 70% of Conveyor and Other Safety Inspection Fees to See 15% Increase

Announcement of Safety Inspection Fees for 13 Types of Hazardous Machines on August 1
One in Four Industrial Accident Deaths Involve Machinery, Safety Inspection Fees Adjusted
"Fees Frozen, Leading to Inadequate Inspections... About 60% of Cost"
Inspection Agency Checks and Supervision Strengthened... "Preventing Industrial Accidents Due to Inadequate Inspections"

[Sejong=Asia Economy Reporter Moon Chaeseok] The government has decided to raise the safety inspection fees for machinery such as presses and conveyors by up to 15% for workplaces that pay less than 70% of the cost price. The fees have been frozen for nine years, resulting in safety inspections being conducted at only about 60% of the actual cost, which has led to inadequate inspections. The government aims to correct this issue.

The Ministry of Employment and Labor announced on the 25th the safety inspection fees for hazardous machinery and equipment, which will be applied starting next month on the 1st. The ministry revealed that from 2014 to 2019, there were 399 fatal accidents caused by machinery and equipment, accounting for 23.5% of the total 1,697 machinery-related fatal accidents.

The ministry judged that the increase in accidents alongside inadequate inspections was the root cause. The low fees were identified as the reason for poor inspections. Since 2012, the safety inspection fee has been frozen at 84,000 KRW for nine years, and inspections were conducted at only about 60% of the actual cost.

Accordingly, the ministry decided to raise the inspection fees. If the fee is less than 70% of the cost price, the increase will be within 15%; if between 70% and 80%, within 10%; and if above 80%, within 5%. Conversely, if the fee is higher than the cost price, it will be reduced. For example, tower cranes under 200 tons had their fees reduced by 2%, and unloaders over 50 tons by 5.3%.

Along with adjusting fees, the ministry will strengthen the inspection and supervision of inspection agencies. Inspection agencies will be required to register photos proving inspection results in the Hazardous Risk Machinery Comprehensive Information System. The Korea Occupational Safety and Health Agency will disclose inspection information such as reasons for failure by inspection agency and machinery type.

Unannounced inspections of hazardous machinery and equipment that have completed inspections will be intensified. Starting this year, a new evaluation factor called 'On-site Inspection of Inspection Status' will be introduced in the assessment of inspection agencies' performance, which involves external experts.

Kwon Kisub, Director of the Occupational Safety and Health Headquarters, said, "To prevent inadequate safety inspections, we will rationalize the safety inspection fees and strengthen the responsibility of inspection agencies accordingly. We will do our best to improve the system and provide guidance and supervision to prevent industrial accidents caused by poor safety inspections."