Strong Economic Sanctions, Including Fines, Imposed on Companies with Frequent Major Industrial Accidents

Announcement of Comprehensive Labor Safety Measures
Improvements Planned for Illegal Subcontracting
Expanded Support for Prevention at Small Businesses

The Democratic Party of Korea and the government have decided to strengthen effective sanctions, such as introducing new administrative fines, to prevent major industrial accidents, which is a key policy agenda for the Lee Jaemyung administration. They also plan to build a comprehensive prevention system in collaboration with local governments and private accident prevention agencies.

On September 15, Kim Byunggi, floor leader of the Democratic Party of Korea, Kim Jooyoung, head of the Democratic Party’s Task Force for Industrial Accident Prevention, Kim Younghoon, Minister of Employment and Labor, and others announced the “Comprehensive Labor Safety Measures for Preventing Major Industrial Accidents” prepared by the Task Force for Industrial Accident Prevention. In particular, the level of economic sanctions will be strengthened. Park Haecheol, a Democratic Party lawmaker and member of the task force, stated, “We have prepared comprehensive measures that include strong economic sanctions against companies with frequent accidents.” Kim Jooyoung also said, “We will establish effective sanctions, such as introducing new administrative fines.” Ahn Hoyoung, chairman of the National Assembly’s Environment and Labor Committee, emphasized, “It is necessary to ensure the practical right to stop work, provide safety equipment, and improve illegal subcontracting,” adding, “Sanctions are necessary for illegal subcontracting.”

Kim Byunggi, floor leader of the Democratic Party of Korea, is speaking at the government-party consultation meeting on comprehensive labor safety measures for preventing major industrial accidents held by the Task Force for Industrial Accident Prevention at the National Assembly on September 15, 2025. Photo by Kim Hyunmin

Kim Jooyoung explained, “We have requested the government to significantly strengthen support for preventing major industrial accidents at small businesses, and to develop effective sanctions to prevent recurrence at companies where accidents occur frequently.” In response, the government stated, “We will focus on supporting industrial accident prevention activities for vulnerable workers, including those at businesses with fewer than 10 employees, foreign workers, specially employed workers, and elderly workers. We will also strengthen the responsibility of prime contractors to ensure appropriate construction costs and sufficient construction periods.”

The Democratic Party of Korea plans to process legislative amendments within the year, including public disclosure of accident investigation reports to guarantee workers’ right to know, mandatory appointment of honorary industrial safety supervisors to ensure the right to participate, the introduction of health checkups for high-risk night workers (such as delivery drivers), requiring both public and private project owners to calculate appropriate construction costs, and adding weather-related disasters such as heat waves as valid reasons for extending construction periods.

Previously, at a Cabinet meeting in July, President Lee Jaemyung addressed the recurring issue of industrial accidents, stating, “If industrial accidents continue to occur, the companies involved must face strict punishment and sanctions strong enough to threaten their survival. They should be made to bear losses several times greater than the economic gains they have achieved, such as through heavy fines or administrative penalties.” He also instructed a review of introducing economic sanctions on companies with insufficient safety measures by changing ESG evaluation methods to affect their investment and financing opportunities.

Kim Byunggi, floor leader of the Democratic Party of Korea, commented on the ultimate goal of the comprehensive labor safety measures, saying, “Our aim is to create an environment where workers can work with peace of mind and return home safely, just as they left for work. We will work closely with the government to make the dream of becoming a leader in industrial safety a reality.”