"Embarrassed and Sorry"... DL·SPC Group Chairman Apologizes at National Assembly Hearing (Comprehensive)

Hearing proceeds for over 3 hours amid Yeo's absence
Lee Hae-wook: "Will deliberate more than criticism"
Heo Young-in: "Will definitely create a safe workplace"

"After listening to the members of the assembly, I find nothing they said to be wrong. The more I think about it, the more ashamed I feel. I will deliberate even more deeply and bring about change, not just in words but in actions. This is also a message to the executives and employees as the chairman. I am ashamed and sorry." (Lee Hae-wook, Chairman of DL Group)

"Regarding the accident that occurred last time, I am very saddened and deeply reflecting on it. Although we have been continuously conducting safety training, it seems it was insufficient. Today, I received many criticisms from the assembly members and learned a lot. I will make more efforts to create a safe workplace and a safe company." (Heo Young-in, Chairman of SPC Group)

Chairman Heo Young-in of SPC Group (left) and Chairman Lee Hae-wook of DL Group are attending the hearing on industrial accidents related to DL Group and SPC Group held on the 1st at the National Assembly Environment and Labor Committee. Photo by Hyunmin Kim kimhyun81@

Lee Hae-wook, Chairman of DL Group, and Heo Young-in, Chairman of SPC Group, bowed their heads when they appeared at the hearing on industrial accidents held by the National Assembly's Environment and Labor Committee on the 1st. This hearing was held because both chairmen did not attend the National Assembly inspection last October. Despite the enforcement of the Serious Accident Punishment Act last year, industrial accident-related incidents continued at DL Group and SPC Group workplaces, prompting the Environment and Labor Committee to demand their attendance at the National Assembly inspection to hold them accountable for management responsibility. However, both individuals were absent citing overseas business trips. Since the enforcement of the Serious Accident Punishment Act last year, eight workers lost their lives while working on-site at DL, and SPC also experienced a fatal entrapment accident at the Shani factory in August.

The ruling party boycotted the hearing entirely, as it was held without bipartisan agreement. Im I-ja, a member of the People Power Party, protested, saying, "Both DL Group and SPC Group have submitted proposals on how to prevent serious accidents and budget for safety management costs (after the National Assembly inspection)," calling the hearing a meaningless show.

In response, Jeon Yong-gi, a member of the Democratic Party on the Environment and Labor Committee, explained the purpose of the hearing, saying, "If the subsidiary presidents come out, they can answer specific questions, but we asked the chairmen to come to confirm sincerity and to boldly change group management."

Chairman Heo Young-in of SPC Group (left) and Chairman Lee Hae-wook of DL Group are attending the hearing on industrial accidents related to DL Group and SPC Group held at the National Assembly's Environment and Labor Committee on the 1st. Photo by Hyunmin Kim kimhyun81@

DL Faces Repeated Criticism Over Subcontractors; SPC Needs to Improve 2-Shift, 2-Team Work System

On this day, the Environment and Labor Committee members pointed out the core causes of industrial accidents. In particular, DL Group was intensively questioned about the fact that eight workers died last year at the construction sites of its key affiliate, DL E&C. Criticism followed that the deaths occurred among subcontractor workers, indicating negligence in management by the primary contractor.

Lee Eun-joo, a member of the Justice Party, said, "There are various causes of the accidents, but the structure is such that by competing for the lowest bid, construction costs are reduced and workdays are shortened to ultimately leave a profit," adding, "This is about illegal subcontracting. DL claims the work was voluntary, but industrial accidents pointed out due to voluntary work will inevitably continue." She added, "Subcontractors also need to make a profit," and "Ultimately, these incidents repeat to finish quickly."

In the case of SPC Group, most affiliates operate under a '2-shift, 2-team' system, leading to concerns that workers suffer from long working hours. Issues were also raised regarding repeated entrapment accidents involving baking machines and other equipment.

Yoon Gun-young, a Democratic Party member, pointed out during questioning, "More than 50% of SPC's affiliates operate under the 2-shift, 2-team system, and the SPL bakery factory is at 67.4%. In contrast, CJ CheilJedang, a competitor in the same industry, switched to a 4-shift, 3-team system in 2016. This shows how backward SPC is."

At the Environment and Labor Committee plenary meeting held at the National Assembly on the 16th, seats of the ruling party members are empty. Photo by Hyunmin Kim kimhyun81@

Park Jung, chairman of the Environment and Labor Committee, said, "Of course, it is important for a company to make a profit and to maintain the management system to realize shareholder profits," but added, "Nowadays, ESG management has changed things. Companies are also doing social contributions and improving working conditions for employees, moving towards 'living together.' The final decision on the two-shift system will be made by management and major shareholders, but shouldn't the company change its management approach?" He emphasized, "The controlling shareholders take the profits through governance, and they must bear social responsibility relative to the profits they take."

Lee Hak-young, a Democratic Party member, cited industrial accidents at SPC affiliate factories involving dough mixers and sauce blending machines, saying, "We need to have system equipment that prevents industrial accidents," and added, "The lids are opened and closed manually, almost like a traditional mill. That is unacceptable."

Criticism for Absence at National Assembly Inspection Continues: "Safety Can Never Be Overemphasized"

Criticism also continued regarding the executives' absence at last year's National Assembly inspection. Kim Young-jin, a Democratic Party member, said, "Last year, it was decided not to call the chairman of the holding company unless they were the controlling shareholder of the group. The inspection was conducted so that the CEO of the relevant company would take responsibility for management and safety. However, (compared to last year) there has been no improvement. Therefore, unless the controlling shareholder chairmen who are responsible for the entire group come out and make responsible decisions and investments, the group's overall safety responsibility is very insufficient. That is why they were summoned as witnesses for the National Assembly inspection."

Woo Won-shik, a Democratic Party member, said, "They were called by the National Assembly to answer about social responsibility but were absent without a convincing reason. Then, we can only see that they do not acknowledge repeated industrial accidents and do not feel responsible."

Chairman Park said, "The reason for holding today's hearing is that safety can never be overemphasized," and added, "As Lee Eun-joo said, workplaces where people go to work and do not return must not exist."