SME Industry "Reviewing Constitutional Petition for Serious Accident Punishment Act" (Comprehensive)

Korea Federation of SMEs, 'New Year Press Briefing'
Recommendations to the 22nd National Assembly
Emphasizing Revision of SME-Related Laws

The small and medium-sized enterprises (SME) sector has decided to consider filing a constitutional complaint if the National Assembly fails to pass the postponement of the application of the Serious Accidents Punishment Act (Serious Accidents Act) to workplaces with fewer than 50 employees at the plenary session in February. They plan to explore various response measures, including legal actions, if the National Assembly does not respond despite continuous appeals.

On the 22nd, the Korea Federation of SMEs held the '2024 New Year Press Conference' and announced this stance. The Federation plans to consider filing a constitutional complaint against the Serious Accidents Act if the postponement bill is not passed at the plenary session scheduled for the 29th. Kim Ki-moon, chairman of the Federation, said, "The Occupational Safety and Health Act also has mandatory and penalty provisions, but the only thing missing is 'imprisonment for more than one year,'" adding, "This toxic clause terrifies SMEs and small business owners." He continued, "After consulting with labor law specialists and law firms, we received opinions that there is a high possibility of unconstitutionality, so we decided to file a constitutional complaint in consultation with SME organizations," emphasizing, "We are not thinking of ignoring or changing the Serious Accidents Act. We are considering a constitutional complaint out of desperation."

Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, is speaking about the Serious Accidents Punishment Act at the New Year's press conference held on the 22nd at the Federation's office in Yeongdeungpo-gu, Seoul. Photo by Jo Yong-jun jun21@

Chairman Kim also said, "The law should be enforced fairly, but excessive punishment is unfair," adding, "We have one last hope for the National Assembly plenary session on the 29th. We will watch to see if the SME sector's opinions are reflected and if the enforcement of the Serious Accidents Act is postponed. If the postponement fails, we will discuss whether SME organizations should take collective action."

Since 80% of workplaces with fewer than 50 employees are unprepared for the Serious Accidents Act, the SME sector warns that serious side effects such as closures of small businesses and job losses among workers may occur after the law is applied. If a serious accident such as a death or two or more injuries requiring more than six months of treatment occurs at an unprepared workplace with fewer than 50 employees, the business owner could face imprisonment for more than one year. At the press conference, Yoon Hak-soo, chairman of the Korea Specialty Contractors Association, pointed out the "ambiguous obligations and excessive punishments" of the Serious Accidents Act. Jo In-ho, chairman of the Korea Mechanical Equipment Construction Association, said, "The law that punishes unconditionally even when the cause of the accident is unclear is harsh." Seok Yong-chan, chairman of the Main Biz Association, also said, "The mandatory provisions of the bill should be clarified, and the obligations of workers should be supplemented."

The Korea Federation of SMEs has conveyed its opinions on the difficulties faced by small businesses due to the Serious Accidents Act through meetings with ruling and opposition floor leaders, issuing more than ten statements, and a signature campaign with over 53,000 signatures. Since January 27, when workplaces with fewer than 50 employees became subject to the Serious Accidents Act, they have held consecutive rallies in the National Assembly, the metropolitan area, and the Honam region, urging the submission of the postponement bill to the plenary session. More than 13,000 SME owners attended the three rallies. Chairman Kim said, "Holding three Serious Accidents Act rallies and demonstrating our strong will through sound and orderly assembly culture that does not harm the public or the nation was very meaningful," and urged, "Please ensure the postponement bill for the Serious Accidents Act is passed at the plenary session on the 29th."

Kim Ki-moon, Chairman of the Korea Federation of Small and Medium Business, is speaking about the Serious Accidents Punishment Act at the New Year's press conference held on the 22nd at the Federation's office in Yeongdeungpo-gu, Seoul. Photo by Jo Yong-jun jun21@

On the same day, the SME sector also announced recommendations for the 22nd National Assembly ahead of the April general election. The core agenda of these recommendations includes promoting SME innovation, restoring labor market balance, establishing a foundation for fairness and coexistence, supporting SME business opportunities, and revitalizing livelihoods and collaboration. Specifically, the industry emphasized that the difficulties faced by SMEs, which are regarded as a solution for Korea's economic growth, remain, and that a paradigm shift in policy through the revision of related SME laws is urgently needed. Additionally, they proposed ten key policy tasks to the National Assembly, including institutional improvements to activate business succession, promotion of productivity enhancement, labor market regulatory reform, alleviation of manpower shortages, inclusion of energy costs such as electricity fees in delivery price linkage, introduction of an SME coexistence finance index, establishment of a third-party restructuring institution, support for expanding domestic and overseas sales channels, and transforming SME cooperatives into regional economic growth platforms.

Chairman Kim said, "Politicians, regardless of party or ideology, must show real action rather than words so that the people can prepare for the future together," adding, "Businesses will do their utmost in their efforts."