Scientific Investigation of Major Accidents Targets Large Corporation CEOs

Identifying Primary Contractor Responsibility under Serious Accident Punishment Act
High-Intensity Investigations Expected Including Forensics

Applied to Construction Industry Fall Accidents
"Increased Likelihood of Prosecuting Management Executives"

Park Hwa-jin, Vice Minister of Employment and Labor, announces the preparation status for the enforcement of the Serious Accidents Punishment Act at the government Seoul office briefing room on the 20th. (Image source=Yonhap News)

[Sejong=Asia Economy Reporter Moon Chaeseok] The government’s plan to apply 'scientific and compulsory investigation' techniques to companies under investigation following the enforcement of the Serious Accidents Punishment Act is being analyzed as a card that effectively targets CEOs of large corporations. This is because, when a serious accident occurs at a subcontractor within a large corporation’s workplace, the existing method?where the local Employment and Labor Office calls in the management responsible for an explanation and conducts face-to-face investigations?makes it difficult to determine the responsibility of the primary contractor, the large corporation. Therefore, the government has introduced scientific investigation methods. The business community has expressed concerns that, during the high-intensity investigation process involving forensic techniques, there is a high possibility that management will be prosecuted, and in the worst case, a management vacuum could occur during the trial process after the company appeals.

According to the government and business circles on the 21st, once the Serious Accidents Punishment Act is enforced on the 27th, related investigations will proceed with a first-stage investigation by the Ministry of Employment and Labor and the police, and if illegalities are found, the case will be forwarded to the prosecution. Additionally, during the first-stage investigation, the Ministry of Employment and Labor plans to employ scientific or compulsory investigation techniques for companies in construction, manufacturing, shipbuilding, and other industries. After the Ministry’s investigation concludes, the prosecution will decide whether to indict management and site managers or refer the case to court.

The scientific investigation technique proposed by the Ministry as the first-stage investigation is a much stronger card than the existing method where the local Employment and Labor Office calls in management responsible for an explanation and conducts face-to-face investigations. It is based on forensic investigation and seizure of the primary contractor’s headquarters as a standard procedure. The scope of investigation will also expand from cases of professional negligence causing death to include whether the primary contractor issued safety and health management system directives and the specific status of securing personnel and budgets. According to the Ministry’s announcement on the 10th, if the Serious Accidents Punishment Act had been applied last year, 190 management officials would have been subject to investigation. Given that the initial investigation intensity is increasing compared to last year, more than 190 management officials could be under investigation in the 'first year of the Serious Accidents Punishment Act' this year.

The business community has expressed concerns that scientific and compulsory investigations are measures targeting CEOs and heads of large corporations in construction contractors, manufacturing, and shipbuilding industries. This is because the Ministry of Employment and Labor clearly stated the day before that it is difficult to apply these techniques to all investigations and that they will be applied only to some large construction and manufacturing companies such as HDC Hyundai Development Company. The fact that local Employment and Labor Offices can determine responsibility through face-to-face investigations based on the Industrial Safety and Health Act for small and medium-sized enterprises not linked by primary and subcontractor relationships also supports this judgment.

A business community official said, "Scientific investigation sends a signal that the headquarters can be subject to forensic investigation and seizure at any time when a serious accident occurs," adding, "Concerns are growing that the possibility of prosecuting management will increase during investigations into violations of the Serious Accidents Punishment Act, and that management vacancies will expand during the investigation process."

The business community expects the government’s scientific and compulsory investigations to be concentrated on 'fall accidents' by accident type and on 'construction and shipbuilding' by industry. In the case of 'crushing accidents,' which typically occur at subcontractor sites of small and medium-sized enterprises and are considered 'traditional industrial accidents,' face-to-face investigations of management and site managers are deemed sufficient. A Ministry of Employment and Labor official said, "If necessary, scientific and compulsory investigations will be conducted to determine whether the headquarters properly issued instructions to subcontractor workplaces where serious accidents occurred and whether they properly invested in organizations and budgets to fulfill safety and health management system expansion obligations."