S. Korea poised to toughen law on occupational accidents

Kim Ki-mun, chairman of the Korea Federation of Small and Medium Business, speaks to reporters regarding Industrial Accident Bill in Seoul on Wednesday. The joint statement was attended by senior officials from Korea Chamber of Commerce and Industry, Federation of Korean Industries, Korea Enterprises Federation, Korea International Trade Association, Korea Federation of SMEs, Federation of Middle Market Enterprises of Korea, Construction Association of Korea, and Korea Specialty Contractors¡¯ Association. [

A South Korean bipartisan bill proposing to toughen punishment on employers for occupational accidents had been tweaked to exempt smaller businesses while placing an additional burden on big companies.

The bill, approved by the Legislation and Judiciary Committee on Thursday, would be enacted into law once it passes the National Assembly. The law would go into effect a year after proclamation.

Under the revised proposal, companies would have to pay up to five times the losses incurred from an injury or death of an employee.

Corporate chiefs would be sentenced to at least one year in prison or face a fine of up to 1 billion won ($922,000). The corporation could face a separate fine of maximum 5 billion won.

In the case of multiple casualties, the employer faces up to seven years in prison or a fine of up to 100 million won. The corporation is fined up to 1 billion won.

Given that the law is likely to weigh more heavily on small businesses that often lack proper means to ensure employee safety, the new rules would be implemented in stages depending on the company size. The law would go into effect in two years for companies with 50 to 100 employees and four years for smaller companies.

The law would also be waived for employers with less than five full-time workers or self-employers running a site smaller than 1,000 square meters.

In the case of subcontractor-driven industries, only intermediate contractors and subcontractors would be liable for compensation, not principal contractors.

Business lobbying groups have opposed the move, arguing that the proposal places undue burden on CEOs and that there are already laws penalizing corporations for negligence.

Kim Ki-mun, head of the Korea Federation of Small and Medium Business, said the bill would take a bigger toll on smaller companies at a time when many are struggling from pandemic-related losses.

Some 860 Koreans lost their lives due to workplace accidents last year, according to government estimates.

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