Strengthened Investigations, Supervision, and Economic Penalties
Prevention Promoted Through Enhanced Financial Sector Risk Management
Sanctions for Construction Firms Expanded to 'Multiple Annual Fatalities'
Deregistration Requests Possible for Recurring Accidents
The government has decided to introduce economic sanctions by imposing fines and penalty surcharges on workplaces where industrial accidents occur. It will also establish a system allowing emergency suspension of work even when an accident is not classified as a major industrial accident. The comprehensive 'Occupational Safety Master Plan' aimed at reducing major industrial accidents is scheduled to be announced next month.
On August 13, Vice Minister of Employment and Labor Kwon Changjun presented the 'Progress and Future Plans for Eradicating Major Industrial Accidents' at a press briefing held at the Government Complex Sejong.
Going forward, the government announced that it will conduct strict investigations and supervision to eradicate major industrial accidents. For major cases, dedicated investigation teams will be operated by both headquarters and local offices, and a consultative body will be formed between the Ministry of Employment and Labor and the Supreme Prosecutors' Office. The aim is to swiftly refer and prosecute companies where major industrial accidents occur. The government is also considering introducing an emergency work suspension order by the Minister of Employment and Labor to prevent industrial accidents, even if they do not qualify as major accidents.
To strengthen supervision, local governments will be granted labor inspection authority and the number of inspectors will be increased. New projects will be established to plan and operate industrial accident prevention initiatives tailored to regional characteristics, and plans will be made to expand the Gyeonggi Province model of occupational safety guardians nationwide. The government also aims to promote private sector collaboration by hiring retirees with experience and expertise to provide ongoing guidance and supervision for small businesses.
Economic penalties will also be significantly strengthened. In the event of legal violations or major industrial accidents, the government plans to impose fines for violations of safety and health measures to ensure immediate and effective sanctions. For corporations where multiple fatal accidents have occurred due to legal violations, a penalty surcharge system will be introduced. Vice Minister Kwon explained, "We will determine the requirements for penalty surcharges by gathering input from various experts and field stakeholders."
The current criteria for suspending business operations or restricting bidding eligibility for construction companies-currently applied when two or more people die simultaneously-will be expanded to include companies with multiple fatalities in a single year. In addition, for construction companies where fatal accidents recur after a business suspension request, a new regulation will be introduced to allow for deregistration requests. The government also plans to actively identify industries beyond construction where fatal industrial accidents can be grounds for permit revocation or other administrative actions.
The government is also considering measures to strengthen risk management within the financial sector, such as loan screening, disclosure, and evaluation, to encourage companies to prevent major industrial accidents. It will consult with relevant ministries on measures to strictly restrict public bidding participation for workplaces with repeated major accidents. Vice Minister Kwon stated, "In addition, we are working with relevant ministries to develop other initiatives that can prevent industrial accidents."
The government also plans to focus on inspecting and managing high-risk small businesses by accident type, including falls, entrapment and collisions, suffocation, and those employing foreign workers. Vice Minister Kwon said, "For construction sites with frequent falls, private accident prevention agencies will provide intensive guidance. We plan to strengthen the installation of safety facilities and revise safety and health regulations to require that fall prevention facilities be installed on the ground and then lifted into place, so as to prevent falls in advance."
For entrapment and collision accidents, the government will conduct focused inspections of businesses with hazardous machinery and equipment to check whether protective devices are installed and safe passageways are secured. For suffocation, a key amendment to safety and health regulations to prevent such accidents will be announced for public comment this month. For foreign workers, the government will prioritize ongoing monitoring and supervision of workplaces with a history of labor law violations or frequent complaints.
Vice Minister Kwon stated, "We plan to establish an online and mobile-based Safe Workplace Reporting Center, which will allow immediate reporting and prompt corrective action on-site." He added, "We are also preparing a system to provide rewards for reporting violations."
To prevent the outsourcing of risk, new disclosure obligations will be introduced, requiring companies to report the status of accidents involving subcontracted workers, recurrence prevention measures, and their safety and health management systems. For illegal subcontracting at construction sites, joint inspections will be regularly conducted not only by the Ministry of Employment and Labor and the Ministry of Land, Infrastructure and Transport, but also by the Fair Trade Commission, with measures such as penalty points and criminal prosecution being pursued.
The Ministry of Employment and Labor plans to gather input from experts, labor, and management before announcing the Occupational Safety Master Plan next month. To achieve tangible results, the establishment of a 'Standing Special Committee' is also under discussion. Vice Minister Kwon said, "We will establish a five-year plan with annual targets. The Standing Special Committee will be responsible for formulating and evaluating the implementation of the plan, and establishing a governance system for ongoing monitoring, so that industrial accident policies can be continuously pursued and improved."
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