[2022 National Audit] No Woong-rae "16.7% of Labor-Exempt Companies Violate Labor Laws"

SK Hynix Reports 61 Industrial Accidents and 1 Death Over the Past 7 Years

Assemblyman No Woong-rae [Image source=Yonhap News]

[Asia Economy Reporter Kim Pyeonghwa] It has been revealed that exemptions from regular labor inspections by the Ministry of Employment and Labor continue despite repeated violations of labor laws. At SK Hynix, which has been exempted from regular labor inspections for the past seven years, 61 industrial accidents and one fatal accident occurred.

According to data received from the Ministry of Labor by Roh Woong-rae, a member of the National Assembly's Environment and Labor Committee and head of the Democratic Research Institute (Democratic Party, Seoul Mapo Gap), 16.7% (227 out of 1,359) of excellent companies violated labor laws in the past five years.

Among the companies selected as excellent companies and exempted from labor inspections in the past five years, the number of workplaces that violated labor laws were ▲62 (2018) ▲77 (2019) ▲34 (2020) ▲59 (2021) ▲34 (2022). Among them, NCSOFT was selected as an excellent company for outstanding gender employment equality and as a top job creator, but was found to have violated the 52-hour workweek system.

An analysis of the top 50 workplaces exempted from regular labor inspections over the past seven years showed that 31 workplaces (61%) experienced 198 industrial accidents and 3 serious accidents. Among these, SK Hynix (exempted for 8 years and 5 months) had the highest number with 61 industrial accidents. Following in order were Korea Land and Housing Corporation with 22 cases (exempted for 6 years and 2 months), Korea Hydro & Nuclear Power Fuel with 15 cases (exempted for 7 years and 4 months), and Costco Korea with 14 cases (exempted for 6 years).

There were also places that maintained exemption from labor inspections despite serious accidents. Last year, two people died in a crushing accident at Hanjin, and one person died in a fall accident at SK Hynix. Nevertheless, the Ministry of Labor selected SK Hynix Co., Ltd. as a top job creator and exempted it from labor inspections from March 2016 to July 2024. Hanjin, recognized as an excellent company for labor-management culture, was exempted from labor inspections from March 2016 to March 2019 and from July 2019 to July 2022.

Assemblyman Roh pointed out that the Ministry of Labor is maintaining the exemption system as a reward and incentive but is effectively neglecting supervision, thereby increasing the risk of accidents. According to the labor inspector's work regulations, companies selected as excellent under the Skilled Craftsman Encouragement Act, model companies, excellent companies for employing persons with disabilities, excellent labor-management culture companies and award recipients, excellent gender employment equality companies, top job creator companies in Korea, certified excellent human resource development institutions, and companies participating in work innovation incentives are exempted from regular labor inspections for three years.

Assemblyman Roh said, “We confirmed that exemption from labor inspections is actually lowering companies’ vigilance. If a company deserves praise, it should receive tax reductions or subsidies, but exempting them from labor inspections is inappropriate,” adding, “The system must be revised so that labor inspections are never exempted under any circumstances to guarantee workers’ lives and safety.”