"It May Raise Awareness, But It Does Not Guarantee Results"
As the government decided to introduce a strong sanction of "up to 5% of operating profit as a penalty" for companies where industrial accidents occur, the business community pointed out that measures for prevention should be strengthened rather than focusing on punishment.
On September 16, a representative from the business sector said, "No one would object to the intention of raising awareness about safety," expressing agreement with the purpose. However, he added, "Excessive criminal penalties under the Serious Accidents Punishment Act itself are not expected to be very effective in reducing accidents."
The comprehensive labor safety measures announced by the Ministry of Employment and Labor the previous day include economic sanctions such as the introduction of new penalty provisions, cancellation of construction company registrations, and expansion of business suspension targets. In particular, due to the provision of "penalties of up to 5% of operating profit," there are concerns that large corporations with operating profits in the trillions of won could face astronomical fines if fatal accidents occur in succession. Even in cases where there is an operating loss or, as with public institutions, operating profit is not disclosed, the minimum penalty will be set at 3 billion won.
This representative emphasized, "It may raise awareness, but it does not guarantee results," adding, "Policies that prioritize punishment only serve to discourage companies from pursuing their business activities."
Recently, the steel and shipbuilding industries, where fatal accidents and other major incidents have repeatedly occurred, expressed significant concern. A representative from the steel industry said, "Even the Serious Accidents Act alone is a considerable burden for companies, and now with the discussion of additional penalties, the burden is inevitably increasing."
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
The shipbuilding industry stated, "Penalties are an issue with legal validity concerns," and explained, "Shipbuilding is an industry that constructs large structures throughout the year, similar to building apartments, so it is difficult to completely prevent accidents even with an emphasis on safety." Another representative commented, "Rather than imposing uniform penalties, institutional improvements to strengthen safety management are needed."
The Korea Employers Federation also pointed out in a statement the previous day, "Employer penalties under Korea's occupational safety and health laws are already at the highest level, and the Serious Accidents Punishment Act, which is unprecedented globally, has been enacted and implemented, yet there is no clear reduction in industrial accidents."
The Federation stated, "Whenever a major industrial accident that sparks social controversy occurs, the government has only presented measures focused on strengthening post-accident punishment without fundamental preventive measures," adding, "If these measures are legislated, the ripple effects will be significant not only for individual companies but also for related companies and partners, and this is feared to have a serious negative impact on the national economy."
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