Conglomerates hit by accidents

By Kim Tae-jong

A series of recent accidents at plants of affiliates of the nation’s major conglomerates such as Samsung, SK, LG and POSCO have raised concerns over their lack of concern regarding safety, which is damaging their reputation as leading global firms.

There have already been nine accidents including an explosion, fire and toxic chemical leaks this year alone ― with the most recent one being in a furnace at POSCO’s steel mill in Pohang, North Gyeongsang Province on March 22.

The world’s third-largest steel maker has since been under fire for its lack of proper preventive measures as the fire at the plant caused by an explosion at the furnace came just two days after it conducted a safety checkup.

The operation of the furnace had been suspended for two days for a safety checkup before the accident as a malfunction was detected.

Police suspect that the steel maker did not take proper safety measures to deal with the malfunction and resumed operations too quickly, which led to the explosion.

Ironically, the incident occurred just four days after the firm officially announced it would strengthen safety measures after similar incidents in 2009, 2010 and 2011.

There have been also a series of toxic chemical leaks at various plants.

On March 22, a leak of toxic hydrofluoric acid at a factory of LG Siltron in Gumi, North Gyeongsang Province, was detected, after a similar mixture leaked at the factory on March 2.

The reoccurrence of the leak angered residents in the town, because they believed that the firm failed to come up with proper measures to prevent such accidents.

On March 2, another toxic chemical leak was reported at chipmaker SK Hynix’s plant in Cheongju, North Chungcheong Province.

At the end of last January, a leak also took place at a Samsung Electronic microchip plant in Hwaseong, Gyeonggi Province, killing one worker and injuring four others.

But what’s more concerning is how they inefficiently coped with the accidents, as they appeared to be anxious to cover them up.

LG Siltron reported the first leak to the emergency authorities six hours after it detected the problem, while the incident at SK Hynix was reported four hours after the leak, only thanks to an anonymous tip-off.

Samsung was severely criticized for the leak, as it only expressed regret over the death of its employee from the accident without admitting responsibility.

Official apologies only followed after police indicted three executive members on charges of accidental manslaughter last month after their interim investigation, and the labor ministry announced on March 3 that they found over 1,900 violations of the Industry Safety Law at its factory in a special investigation.

Industry experts argue that the repetitive accidents occurred due to insufficient management and supervision at the factories.

They warn that such accidents can damage not only the safety of the firms’ employees and residents in the surrounding area of their factories but also their reputation as global firms.

“The poor handling of accidents can give the impression that they are not abiding by basic safety rules, which can damage their global competitiveness,” Shin Min-young, a researcher at LG Economic Research Institute, said.

He said local companies should learn a lesson from the Union Carbide disaster in Bhopal, India in 1984. The accident in which highly toxic gas leaked and killed about 4,000 people, later made the firm leave the country.

Amid concerns over the repetitive accidents here, the government is taking steps to order firms to improve countermeasures to prevent them.

But experts suggest that each firm should make efforts to enhance on-site workers’ consciousness of safety and strengthen safety supervision at factories, along with the government introducing systematic guidelines.