[Budget Focus] Lee Jaemyung Administration Declares "War on Industrial Accidents"... Is Next Year's Budget Sustainable?

The Number of Inspectors to Surge to 1,832 Next Year, but Expertise in Question
Apprenticeship-Style Training Alone Has Its Limits
Rising Industrial Accident Budget Calls for Greater Fiscal Support for the Fund

The Lee Jaemyung administration is placing a strong emphasis on 'industrial accident prevention' by significantly increasing the number of labor inspectors. However, as a large number of new personnel are being added, concerns are growing over their lack of expertise. With rising budgets for industrial accident prevention and increased insurance payouts, there are calls to expand government contributions to the related fund.

◇Industrial Safety Inspectors: Numbers Increase, Expertise in Question

According to the National Assembly Budget Office and other sources on November 12, in line with the government's policy that 'no more workers should be injured or lose their lives at the workplace,' the number of industrial safety inspectors (labor inspectors responsible for occupational safety and health) will be significantly increased next year. Data from the Ministry of Employment and Labor shows that the authorized number of inspectors will rise from 1,182 this year to 1,832 next year, an increase of 650.

The Budget Office explained, "The work of industrial safety inspectors requires not only knowledge of safety regulations but also a high level of understanding of the entire field, and since they also serve as special judicial police officers, their impact on industrial sites is expected to be considerable." Most of the newly hired personnel will be newly appointed civil servants, but the government is also considering open recruitment, general transfers from other ministries and local governments, and hiring individuals with private sector experience. There is a high possibility that these new inspectors may lack the required expertise. The Ministry of Employment and Labor has stated that it will use an apprenticeship-style training program with experienced inspectors to ensure a smooth transition, but questions remain about its effectiveness.

Another issue is the severe shortage of funding for job training. Despite the large increase in personnel, the budget for industrial safety inspector job training remains at 400 million won, the same as this year. An official from the Budget Office expressed concern, saying, "If industrial safety inspection work is not carried out properly, it could not only undermine work efficiency at industrial sites, but also significantly reduce the acceptance of various administrative actions by those on site."

◇Growing Burden on the Industrial Accident Fund

There are also calls to increase government financial support for the Industrial Accident Compensation Insurance and Prevention Fund (Industrial Accident Fund). The Industrial Accident Fund is mainly financed by employers' industrial accident insurance premiums, but some government funding is also provided. Under the Industrial Accident Compensation Insurance Act, the government can contribute up to about 3% of the fund, but according to next year's budget, the actual contribution will be only 0.15%.

Not only is the scale of industrial accident prevention programs increasing noticeably, but industrial accident insurance payouts are also rising every year. In fact, the government has allocated 1.5059 trillion won for industrial accident prevention programs such as the new 'Safe Workplace Reporting Reward' and 'Hazardous Work Environment Improvement,' which is a 15.1% increase from this year's 1.3081 trillion won. Industrial accident insurance payouts increased from 6.6864 trillion won in 2022, to 7.2849 trillion won in 2023, and to 7.6333 trillion won last year. The Budget Office suggested, "Given the increase in expenditures from the Industrial Accident Fund, it is necessary to consider, in the mid- to long-term, increasing both the amount and proportion of general account transfers to the fund."