Automotive Industry Requests Postponement of Serious Accident Punishment Act for Workplaces with Fewer Than 50 Employees

The Korea Automobile Industry Association requested that the law enforcement of the Serious Accidents Punishment Act be postponed for small-scale workplaces with fewer than 50 employees, starting from the 27th, considering the desperate situation of small parts companies.

On the 21st, the association released an appeal for postponement containing this request. Although a bill proposing an additional grace period has been submitted amid the original law enforcement scheduled for the 27th, it has not yet been processed by the National Assembly, and the association urged for its prompt handling. The association is an organization comprising the Korea Automobile Mobility Industry Association, private automotive and parts-related groups, research institutions, and partner organizations.

Last month, participants sang the March for the Beloved at the Korean Confederation of Trade Unions rally calling for the halt of the amendment to the Serious Accidents Punishment Act held in front of the National Assembly in Yeouido, Seoul. Photo by Kim Hyun-min kimhyun81@

The association stated, "The global automobile industry is rapidly transitioning to electrification with electric vehicles and autonomous vehicles, while fierce competition is underway to dominate future car technology amid expanding protectionism. However, the transition rate to future vehicles in our automobile parts industry remains at 20%, and small parts manufacturers are unable to keep up with the global trend due to poor conditions such as lack of funds and manpower shortages, pushing them toward a crisis of survival."

They added, "If the Serious Accidents Punishment Act is enforced, small-scale workplaces that are unprepared will see an increase in closures due to criminal penalties, leading to other social side effects such as unemployment. The majority of automobile parts companies are concerned about the enforcement of this law."

Representatives of small and medium-sized enterprise organizations, including the Korea Federation of SMEs and the Korea Specialty Contractors Association, held a press briefing at the Korea Federation of SMEs at the end of August last year to urge the extension of the grace period for applying the Serious Accidents Punishment Act to workplaces with fewer than 50 employees. Jung Yun-mo, Vice Chairman of the Korea Federation of SMEs, is reading a statement. Photo by Heo Young-han younghan@

The association expressed, "Despite several appeals for postponement, the National Assembly has failed to conduct proper discussions, causing the automobile industry to feel not only frustration but also despair. Since economic organizations have consistently stated that they would not request further postponements, we urge the National Assembly not to ignore the voices of the automobile parts industry and to show a progressive stance."

They continued, "Realistically, small-scale workplaces lacking investment capacity need an opportunity to improve the causes of their unpreparedness and to prepare before facing criminal penalties. We hope for institutional support from the government so that small parts companies can prepare as soon as possible."