FKI: "Shift from Punishment to Self-Regulation in Serious Accidents Act Is Appropriate"

FKI: "Self-Regulatory Prevention System Is the Right Direction"
Cautions Against Mandatory Risk Assessments Without Legal Reforms

Minister Lee Jeongsik of the Ministry of Employment and Labor briefing on the roadmap to reduce major accidents at the government Seoul office briefing room on the 30th. (Photo by Yonhap News)

[Asia Economy, Reporter Moon Chaeseok] The Federation of Korean Industries (FKI) evaluated the government's "Roadmap to Reduce Major Accidents," announced on November 30, as "an appropriate policy direction." The FKI judged that shifting away from an administrative approach focused on CEO regulation and punishment toward a "self-regulatory prevention system" is the correct policy direction.

Choo Gwangho, head of the FKI Economic Division, stated in a press release on the same day, "We believe it is appropriate to move away from an administration centered on regulation and punishment by law and transition to a 'self-regulatory prevention system,' while also strengthening the responsibility and participation of on-site workers."

The FKI also expressed the opinion that the introduction of a system mandating risk assessments should be approached with caution. Choo pointed out, "If mandatory risk assessments are introduced without reasonable improvements to the current legal framework, this could lead to a 'regulation upon regulation' situation for businesses."

According to the FKI, the Act on the Punishment of Serious Accidents (Serious Accidents Punishment Act) is not only unprecedented globally, but its scope of application and coverage are ambiguous, and the level of punishment is excessively high, leading to increased confusion on the ground.

According to the Ministry of Employment and Labor, there were 483 major accidents and 510 deaths from January to September this year. Compared to the same period last year, the number of accidents decreased by 9, while the number of deaths increased by 8. The general consensus is that it is difficult to say that the number of occupational accident fatalities has significantly decreased since the introduction of the Serious Accidents Punishment Act.

Choo added, "Since major accidents have not decreased even after the law was implemented, questions about its effectiveness are being raised," and continued, "We hope that the intent of this roadmap will be fully reflected in future legislative processes, and that the opinions of businesses at the field level will be sufficiently incorporated through legal improvements."