Starting Tomorrow, Serious Accident Punishment Act Enforced... Distribution Industry "Concerned Amid Tension"

Lotte Department Store Main Branch.

[Asia Economy Reporter Yuri Kim] On the eve of the enforcement of the Serious Accident Punishment Act (Serious Accident Act), tension is running high in the distribution industry. Department stores, large marts, and e-commerce sectors both online and offline are reviewing their safety management systems that were reorganized ahead of the law's enforcement and are closely monitoring the situation.

Lotte Shopping previously received consulting from Kim & Chang, the largest law firm in Korea. The safety departments of department stores, marts, and e-commerce were promoted to representative dedicated organizations, and to establish a safety and health management system, risk factors for serious accidents in each business division were identified, and related regulations were revised to prevent and improve them. Shinsegae Department Store also upgraded its head office safety team to a safety and health officer team last year, making it an executive-level organization. They are also preparing specific response plans to prevent serious accidents in consultation with external safety experts. Hyundai Department Store established a dedicated safety organization called the 'Safety Management Team' in 2018, and in the second half of last year, newly hired safety managers were assigned to eight stores requiring direct employment. They plan to hire additional safety managers by the second half of this year and assign them to all 16 Hyundai Department Store locations and 8 outlet stores. They intend to hire more than twice the number of personnel required by the Serious Accident Act standards.

Large marts have also taken proactive measures. Lotte Mart obtained the 'Occupational Health and Safety Management System International Standard ISO 45001' certification last year for all nationwide stores, logistics centers, and Fresh Quality Innovation Centers. ISO 45001 is an international standard certification system designed to predict and prevent various workplace hazards in advance and manage safety and health systems within organizations. Emart established a safety and quality department, including safety management and quality control teams, and upgraded it to an executive-level organization. Safety managers work at all stores and conduct regular safety training. Homeplus also created a safety and health management headquarters directly under the CEO last year, integrating the safety management team and field response team for better systematization.

The e-commerce industry has also moved swiftly. SSG.com newly organized an ESG (Environmental, Social, and Governance) team and placed related organizations such as the quality control team and safety management team under it for overall supervision. Market Kurly established and has been operating a safety, health, and environment team since the end of last year.

The industry views the establishment of such safety-related prevention and one-stop response systems positively but expresses concerns about the broad scope of responsibility amid ambiguous regulations. A distribution industry official said, "While the intention to prevent safety accidents is understood, the regulations regarding the subjects of punishment are vague, and there is great concern that cases of abuse may occur."