Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Companies respond to president's war on fatal workplace accidents
President Lee Jae Myung and Prime Minister Kim Min-seok, left, listen to a briefing by Labor Minister Kim Young-hoon on industrial accidents during a livestreamed Cabinet meeting at the presidential office in Seoul, Tuesday. Yonhap
By Park Jae-hyuk
POSCO, SPC vow to tighten safety measures after Lee sends warning
Companies with histories of fatal industrial accidents have been scrambling to bolster safety measures after President Lee Jae Myung publicly rebuked them for what he described as repeated, preventable workplace deaths.
Firms are especially wary after Lee questioned the effectiveness of the Serious Accidents Punishment Act (SAPA) and warned of tougher financial penalties for serious workplace incidents. SAPA, which took effect in January 2022, allows for a company CEO to be jailed if a major worksite accident occurs and sufficient safety precautions were not in place.
POSCO Group launched a task force under direct oversight of Chairman Chang In-hwa on Friday to examine safety management across the company’s affiliates.
The steelmaker said it is considering increasing investments in safety management, establishing a dedicated safety management subsidiary and launching a foundation to support the families of workers killed in industrial accidents.
Lawmakers from the ruling Democratic Party of Korea examine a highway construction site managed by POSCO E&C in Uiryeong, South Gyeongsang Province, Thursday. Yonhap
These moves came after the president described a spate of workplace deaths at POSCO E&C, the group’s construction arm, as “murders through willful negligence” during a livestreamed Cabinet meeting on Tuesday.
Lee’s remarks came just four days after visiting one of SPC Group’s factories on July 25 to meet with Chairman Hur Young-in, head of the conglomerate that owns Paris Baguette. During the visit, Lee criticized excessive work hours as a possible cause of ongoing fatalities at the company’s bakeries. His visit was soon followed by SPC’s announcement on July 27 of a new eight-hour cap on night shifts for factory workers to begin Oct. 1.
After POSCO E&C issued a public apology on the day of the Cabinet meeting, POSCO Group also apologized Thursday as Labor Minister Kim Young-hoon visited the construction firm’s Incheon headquarters. That same day, lawmakers from the ruling Democratic Party of Korea visited a highway construction site managed by POSCO E&C, where a 69-year-old worker died July 28 after becoming ensnared in a drilling machine.
“We will dedicate all our resources to identifying the root causes of these accidents and resolving the problem,” POSCO Group said in a statement.
Members of the Construction Association of Korea pose at the association's headquarters in Seoul, Thursday, during an emergency meeting to discuss ways to prevent fatal accidents and strengthen on-site safety. Newsis
The POSCO E&C accident has alarmed the entire construction industry.
Lotte E&C announced Tuesday that its construction sites nationwide will join a safety campaign through the year-end aimed at eradicating fatal worksite accidents.
The Construction Association of Korea (CAK) held an emergency meeting Thursday to discuss ways to prevent fatal accidents and strengthen on-site safety. Major construction industry associations plan another emergency meeting Monday to coordinate further measures.
“The construction industry will support government policies and work together to establish effective safety management systems,” CAK Chairman Han Seung-goo said.
HD Hyundai Heavy Industries also announced Wednesday that a new safety management system will take effect Aug. 18 to prevent the shipyard’s most common accidents, including falls, suffocation, fire and electric shock.
“We want to contribute to the national effort to reduce industrial accidents and build a reputation as the world’s safest shipyard,” a company official said.
The government is increasing pressure on companies implicated in worksite accidents.
On Wednesday, following the death of a worker at Hansol Paper’s factory on July 17, police visited the facility to investigate and soon released details of their findings. Financial authorities are also considering restricting loans and credit guarantees to companies involved in serious industrial accidents.
In response, the main opposition People Power Party accused Lee of “suffocating” businesses.
“It is unreasonable to call industrial accidents ‘murders through willful negligence’ and to paint business leaders as potential murderers,” the conservative party said in a statement. “There are no intentional industrial accidents in our society.”