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Justice or overreaction? President's war on industrial accidents causes stir
Police and labor ministry officials confiscate evidence from POSCO E&C's headquarters in Incheon, Tuesday. Yonhap
By Park Jae-hyuk
Gov't mulls tougher penalties for workplace deaths
Mixed responses are being raised over President Lee Jae Myung's push to reduce what he describes as persistent and preventable workplace fatalities, as the government considers tougher penalties for industrial accidents.
During a Cabinet meeting on Tuesday, Lee reiterated the need for measures to eradicate fatal industrial accidents, while the labor ministry proposed stricter regulations.
"Cutting costs at the expense of someone's life is murder by willful negligence," the president said. "Even if we need to amend the relevant laws, it is time to move past being an underdeveloped 'republic of industrial accidents.'"
Presidential spokesperson Kang Yu-jung told reporters that Lee ordered ministers to consider imposing heavier fines on companies found responsible for fatal industrial accidents and permanently banning such firms from bidding on publicly funded projects.
"The president also ordered ministers to consider giving a large sum of rewards to citizens who report worksites with poor safety management," she said.
Earlier that day, police and labor ministry officials carried out a search-and-seizure operation at POSCO E&C following the recent electrocution of a Myanmarese worker. The ministry also held an emergency meeting with regional offices the same day to discuss investigating both the construction firm and POSCO Group's steelmaking unit, which is under scrutiny after a worker died in a fall at its steel mill last month.
A day earlier, around 80 executives, team leaders and site managers at DL Construction offered to resign after a worker died at a company-managed apartment construction site on Friday. The presidential office, referencing the incident, directed ministries to brief the president directly whenever such tragedies occur.
Lee previously floated the idea of revoking the licenses of construction firms, following the electrocution case at a POSCO E&C-managed expressway worksite, which took place less than a week after he rebuked the company for a July 28 fatality at another expressway worksite.
President Lee Jae Myung presides over a Cabinet meeting at the presidential office in Seoul, Tuesday. Yonhap
At a prior Cabinet meeting, Lee discussed possible financial sanctions for firms linked to serious industrial accidents, questioning the efficacy of the Serious Accidents Punishment Act, which took effect in January 2022 and allows company CEOs to face jail time if a major accident occurs without sufficient safety precautions.
In response to the president’s heightened focus on industrial accidents, the Ministry of Land, Infrastructure and Transport, along with the Fair Trade Commission, ramped up scrutiny on POSCO E&C.
Alert to the administration's warnings, construction companies have publicly pledged improvements to their safety oversight.
Still, some in the public view the government’s steps as excessive.
On Saturday, a citizen filed a petition with the National Assembly urging the president to retract his proposal to revoke POSCO E&C’s license.
"POSCO E&C employees are also Korean citizens striving to prevent every possible accident at construction sites," the petitioner stated. "Far from being legal, Lee’s comments are like a death sentence for the company."
Some critics note that other firms also see frequent workplace deaths, while the conservative main opposition People Power Party (PPP) has suggested political motives behind the scrutiny on POSCO E&C.
Legal experts did not expect the government to revoke construction firms' licenses due to industrial accidents, unless faulty construction is proven.
The only two construction firms to lose their licenses after major disasters are Sampoong Engineering & Construction, which oversaw the Sampoong Department Store that collapsed in 1995 killing over 500, and Dongah Construction Industrial, responsible for the Seongsu Bridge collapse in 1994 that killed 32. HDC Hyundai Development Company, responsible for the deaths of nine bus passengers killed by the 2021 collapse of a Gwangju building under demolition, kept its license.
"POSCO E&C is unlikely to lose its license, but could face a temporary suspension of operations or be barred from bidding on publicly funded projects," said Park Eon-young, a lawyer at law firm Teheran.
Industry experts advise authorities to consider the potential impact on jobs and housing supply.
"If the government sanctions large companies, it should weigh the consequences for employees and subcontractors," said Lee Eun-hyung, a researcher at the Korea Research Institute for Construction Policy.
Still, labor unions are calling for more decisive actions to eliminate industrial accidents.
"For the Lee administration to prevent worker deaths, it needs comprehensive reforms of laws and systems, and must guarantee worker and union participation in related discussions," the Korean Confederation of Trade Unions said Tuesday.