Kim Hyun-bin began his journalism career at Arirang TV from 2012 to 2017, specializing in defense, foreign affairs and the economy. In 2018, he joined The Korea Times, covering society and business, and is currently responsible for embassy affairs.
Businesses concerned about first court ruling on violation of new industrial accidents law
A lawyer for Onyou Partners, who's CEO was sentenced to one-and-a-half years in prison, suspended for three years, for violating the Serious Accidents Punishment Act, answers reporters' questions at a court in Goyang, Gyeonggi Province, Thursday. Yonhap
By Kim Hyun-bin
By Kim Hyun-bin
Business lobby groups expressed concerns, Thursday, over the first court ruling on a violation of the Serious Accidents Punishment Act, according to industry officials Thursday.
A court in Goyang, Gyeonggi Province sentenced the CEO of Onyou Partners to one year and six months in prison, suspended for three years. The court also imposed fines of 30 million won ($22,750) on the company and 5 million won on the site manager.
This is the first ruling after the new law was implemented on Jan. 27, 2022, to penalize the owners and management of companies with 50 or more workers for failing to fulfill their duties to prevent serious accidents.
The CEO was indicted in May 2022 after a subcontracted worker fell to his death at the company's construction site.
He was accused of violating the Serious Accidents Punishment Act by failing to take necessary safety measures. In the construction sector, the law applies to projects worth 5 billion won or more and carries penalties of at least one year in prison or up to 1 billion won in fines.
"The company's failure to adhere to safety and health regulations led to the worker's death," the court ruled.
The court said it took into consideration the company's efforts to make a sincere apology and provide compensation to the bereaved family as well as the family not wishing the CEO to be punished.
“This was an excessive ruling carried out due to the implementation of the Serious Accidents Punishment Act,” an official from the Korea Enterprises Federation (KEF) said. “The act states a minimum one-year sentence for severe industrial accidents, so the ruling was harsh. If this ruling is repeated in the future, confusion within the industry will grow.”
The official also said the law's impact on small businesses will be greater than large ones if the CEO of the company is prosecuted.
“The smaller a business is, the more it tends to have an inadequate response to situations like this. In addition, at small businesses, it is difficult to manage operations if the CEO is prosecuted which increases legal risks and will make it difficult to manage the company,” he said.
More companies are expected to face similar circumstances from 2024 as the law is scheduled to be applied to businesses with less than 50 employees.
“The business community's concerns have now become a reality. The Serious Accidents Punishment Act is scheduled to be expanded to businesses with less than 50 employees next year, where most are unprepared for the act and have not taken general precautionary measures,” said an official at a major business association, who declined to be named.