"8 out of 10 Corporate Safety Officers Say Punishment Regulations for Executives under the Serious Accident Punishment Act Are Excessive"

KEF Survey Shows Growing Calls for Legal Revisions and Improvements
Kim & Chang Lawyer: "Risk Assessment Procedures Must Be Established"

[Asia Economy Reporter Lee Hye-young] Eight out of ten corporate safety managers perceive the 'punishment of management responsibility' provision in the Serious Accidents Punishment Act, which will take effect on the 27th, as excessive.

The Federation of Korean Industries (FKI) held an online briefing session titled 'Serious Accidents Punishment Act D-7 Final Checkpoint' on the 20th in collaboration with Kim & Chang Law Office and the KOSDAQ Association, announcing the results of a related survey.

The 'Preparation Status for the Introduction of the Serious Accidents Punishment Act' survey, conducted by FKI from the 13th to the 17th, involved safety managers from 71 companies. The companies expressed concerns about the Act, including ▲difficulty in interpretation due to ambiguous legal provisions (43.2%) ▲excessive burden on management responsibility (25.7%) ▲administrative and economic burdens (21.6%) ▲business contraction due to fear of punishment (8.1%).

Notably, 77.5% of all respondents perceived the management responsibility punishment provision in the event of a serious accident as excessive. Specifically, 43.7% said 'somewhat excessive' and 33.8% said 'very excessive.' Only 16.9% believed it was 'not excessive.'

Among those who answered it was excessive, 94.6% believed that future legal amendments or supplements are necessary.

It was found that 69% of the responding companies have appointed or plan to appoint a Chief Safety and Health Officer, and 66.2% have established dedicated organizations related to serious accidents.

Other opinions included the need for 'a sufficient guidance period after the law's enforcement,' 'clear standards for forming dedicated organizations,' and 'the government's preparation of detailed guidelines.'

Attorney Kim Sung-joo of Kim & Chang stated at the briefing, "The most important thing is to establish a risk assessment procedure for work," and added, "We must not forget that the purpose of the law is to prevent accidents rather than to punish."

Attorney Kwon Soon-ha of Kim & Chang emphasized the importance of setting specific safety and health goals and incorporating these goals into management policies to reflect them as key performance indicators (KPIs) at the company-wide level.

Attorney Kwon added, "It is also important to pay attention to the dedicated department overseeing serious accident tasks and the placement of specialized personnel," and "Regular status checks and the budgeting and execution of related expenses are also crucial."