3,500 Small Business Owners Gather at the National Assembly: "The 2-Year Postponement of the Serious Accident Punishment Act Must Be Approved"

17 Associations Including the Korea Federation of SMEs
3,500 SME Representatives Gathered Nationwide
"Suddenly Turned into Presumed Lawbreakers"

Over 3,500 small and medium-sized business owners from across the country gathered at the National Assembly on the 31st to urge the passage of a bill to postpone the Serious Accident Punishment Act (Serious Accident Punishment Act).

The Korea Federation of SMEs held a press conference in front of the National Assembly main building that afternoon. This was to convey the opinions of the small and medium-sized business community regarding the failure to submit the bill to postpone the Serious Accident Punishment Act for small workplaces with fewer than 50 employees to the National Assembly.

At the press conference, more than 3,500 representatives of small and medium-sized enterprises from all over the country gathered, including 17 associations and organizations from the small and medium-sized business and construction industries.

Kyunghwan Sohn, Chairman of the Korea Employers Federation, Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, and representatives of small and medium enterprises held a rally on the 31st in front of the National Assembly condemning the failure to postpone the Serious Accident Punishment Act for workplaces with fewer than 50 employees. (Photo by Da-yeon Yeom)

In their statement, they claimed, "The Serious Accident Punishment Act is being fully applied to small businesses with fewer than 50 employees, turning more than 830,000 small and medium-sized enterprises and small business owners into potential criminals overnight."

They continued, "Due to the complex economic crisis following COVID-19, more than 80% of small manufacturing and construction companies have not prepared for the Serious Accident Punishment Act, and small business owners are unaware whether they are subject to the law," adding, "If the CEO of a small business is criminally punished, the business will inevitably face closure, and workers will lose their jobs."

They also stated, "The small and medium-sized business community has issued statements requesting postponement of the law's application more than ten times and has repeatedly visited the National Assembly to plead for more preparation time," adding, "They even promised that if the law's application is postponed for just two years, they will not request any further extensions."

They emphasized, "The Serious Accident Punishment Act should prioritize prevention over punishment," and strongly urged, "The political sphere must set aside partisan interests, focus solely on the people's livelihood, and ensure the passage of the two-year postponement bill for the Serious Accident Punishment Act applicable to workplaces with fewer than 50 employees."

Kim Ki-moon, president of the Korea Federation of SMEs, Sohn Kyung-shik, chairman of the Korea Employers Federation, and Choi Seung-jae, a member of the People Power Party, were also present at the site, lending their support to the postponement of the Serious Accident Punishment Act.

Kim Ki-moon, president of the Korea Federation of SMEs, said, "The fact that so many business owners have gathered at the National Assembly is unprecedented in the 62-year history of the Federation," adding, "Politics must no longer hinder the economy."

Chairman Sohn said, "Despite the desperate appeals from the business community, the National Assembly has not even begun discussions. It is difficult to reduce fatal accidents to advanced country levels with laws like the Serious Accident Punishment Act that focus solely on punishing business owners," and argued, "In situations where safety management systems are insufficiently prepared, the most effective way to prevent accidents is to help workplaces find improvement measures on their own."

The Serious Accident Punishment Act stipulates that if a serious accident occurs and it is confirmed that the business owner or management responsible neglected their duty to ensure safety and health, they shall be punished by imprisonment for more than one year or a fine of up to 1 billion won. The small and medium-sized business community has long expressed concerns that the full application of the Serious Accident Punishment Act could cause confusion on the ground and has called for an additional two-year postponement.

However, due to ongoing disagreements between the ruling and opposition parties over conditions such as the establishment of the Industrial Safety and Health Agency, the postponement bill failed to pass the plenary session of the National Assembly held on the 25th. From the 27th, the number of workplaces with fewer than 50 employees subject to the Serious Accident Punishment Act reaches approximately 837,000.