This photo shows a construction site in Seoul where workers are moving construction equipment. (Image courtesy of Yonhap)
SEOUL, Sept. 15 (Korea Bizwire) — Companies that suffer from at least three industrial accident deaths a year will be fined up to 5 percent of their operating profit, the labor ministry said Monday.
Under the new industrial safety measures, the government will revise a law that would revoke the licenses of companies that continually report fatal accidents at work, according to the ministry.
The ministry unveiled the series of punitive measures it seeks to implement in the wake of fatal accidents at construction companies this year, most notably at POSCO E&C, which prompted the company’s CEO to resign last month.
Through the measures, the ministry seeks to lower the country’s number of industrial accident deaths at 0.39 per 10,000 people to the Organization for Economic Cooperation and Development (OECD) average of 0.29 by 2030.
Under the planned measures, the ministry will create a new regulation allowing it to ask for registration cancellations against construction companies that suffer from repeated serious industrial accidents.
If a company faces business suspension for the third time in three years due to such accidents, they will become eligible for the move. Once de-registered, the company would be restricted from all business activities.
Companies that suffer from at least three industrial accident deaths annually will also be fined at least 3 billion won (US$2.16 million) and up to 5 percent of their operating profit.
The fines will be determined based on the number of deaths and accidents, while the paid fines will be invested into preventive measures against industrial accidents.
If a publicly listed company experiences a serious industrial accident, the company will be required to disclose the accident on the day a criminal verdict is handed out.
“There are concerns from businesses about the penalty system, but it’s flawed to say the penalty is excessive based on the premise of an accident, when there would be no penalties if preventive measures are taken,” Vice Labor Minister Kwon Chang-jun said.
(Yonhap)
