Failure to Pass Bill Postponing Expansion of Serious Accident Punishment Act
Application to Workplaces with Fewer Than 50 Employees from the 27th
KEF, KCCI, and KITA Express "Concerns Over Side Effects"
On the 25th, economic organizations collectively expressed concern and regret after a bill to postpone the expanded enforcement of the Serious Accidents Punishment Act (Serious Accidents Act), which criminally punishes business owners or management officials when serious accidents such as worker deaths occur, for two years failed to pass the National Assembly.
On the same day, the ruling and opposition parties discussed whether to handle the bill to postpone the expanded enforcement of the Serious Accidents Act for workplaces with fewer than 50 employees at the plenary session of the National Assembly but ultimately failed to reach an agreement. Accordingly, the Serious Accidents Act will apply to workplaces with fewer than 50 employees starting from the 27th.
The Korea Employers Federation (KEF) issued a 'management position' expressing "deep regret" over the failure of the postponement bill to pass the National Assembly, expressing concern that "the expanded application of the Serious Accidents Act will result in side effects such as the proliferation of lawbreakers, business closures, and worker unemployment rather than accident prevention effects in the future."
KEF warned that significant damage is expected if the Serious Accidents Act is fully applied to workplaces with fewer than 50 employees, urging, "The National Assembly should actively seek ways to extend the postponement of the law's application and prepare support measures for companies vulnerable to industrial accidents as soon as possible."
It added, "We must promptly pursue supplementary legislation to resolve legal ambiguities and shift excessive criminal penalties on management to economic penalties so that the Serious Accidents Act can focus more on prevention than punishment."
Kang Seok-gu, head of the research division at the Korea Chamber of Commerce and Industry, commented, "The business community has repeatedly requested the National Assembly to postpone the application of the Serious Accidents Act to workplaces with fewer than 50 employees, so it is very regrettable that the bill failed to pass."
Kang stated, "If the law is enforced as is, uncertainty in small and medium-sized enterprises' management will increase, and with the law being operated with a focus on punishment, small business owners will find it difficult to actively engage in management activities. This will inevitably have a negative impact on our livelihoods and jobs overall."
Jung Manki, vice chairman of the Korea International Trade Association, said, "Due to strong post-penalties, the management of small and medium-sized enterprises will shrink, and business closures and unemployment caused by accidents will bring confusion to industrial sites." He expressed serious concern about "the immediate enforcement of the law, which rather hinders companies at a crucial time of transitioning to ‘export plus.’"
He added, "The Serious Accidents Act has many legal aspects that need to be supplemented to achieve its primary goal of preventing industrial accidents, so postponement of application and legislative supplementation should be carried out simultaneously," urging, "We call on the ruling party and government to prepare follow-up measures as soon as possible."
Earlier, on the 23rd, the Small and Medium Business Council, composed of about 10 small business organizations including the Korea Federation of SMEs and the Korea Specialty Contractors Association, held an emergency press conference urging the postponement of the law's application, stating, "If the Serious Accidents Act is enforced as is, unprepared small businesses will face a wave of closures, and workers will lose their jobs."
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