🚨 Severe Accident Punishment Act: Preventing Major Accidents and Punishing Business Leaders

Today Korean Social News | 2025.05.22

📌 Deaths Rise at Small Workplaces…Calls to Expand Safety Law Coverage

💬 In the first quarter of this year, workplace deaths at companies with fewer than 5 workers increased by 9 compared to last year. Construction industry deaths also rose. Labor groups point out that small workplaces are in a blind spot of the Severe Accident Punishment Act. Currently, this law only applies to workplaces with 5 or more workers. The lack of safety management systems at small companies is blamed for repeated accidents. Voices are growing louder for expanding the law's coverage and creating real accident prevention measures.

Summary

• The Severe Accident Punishment Act punishes business leaders when major accidents happen at workplaces.
• Currently, it only applies to workplaces with 5 or more workers, leaving small workplaces unprotected.
• The law requires building safety management systems to spread prevention-focused safety culture.

1️⃣ Definition

The Severe Accident Punishment Act is a law that criminally punishes business leaders when major accidents happen at workplaces. Its official name is "Act on the Punishment of Severe Accidents" and it has been in effect since January 27, 2022.

In the past, workplace accidents were seen as the fault of field managers or individual workers. Now, this law treats them as failures by company leaders to meet their safety duties, requiring real prevention measures.

💡 Why is this important?

• It requires business leaders to take safety duties, encouraging prevention-focused safety management.
• It protects workers' basic right to life and safety.
• It helps spread safety culture in workplaces and reduce industrial accidents.
• It shifts policy from punishment after accidents to prevention before accidents.

2️⃣ Main Content and Features of the Law

📕 Who and What is Covered

• The law has limited coverage. Those covered include:

  • Workplaces with 5 or more regular workers (companies with fewer than 50 workers have been covered since 2024).
  • Business leaders (CEOs, business owners, those in charge of management) are subject to punishment.
  • Subcontractor workers and dispatched workers are also protected.
  • For construction: projects worth 5 billion won or more since 2022, projects under 5 billion won since 2024.
  • Public facilities and public transportation are also included.

• Major accidents are clearly defined. Major accidents include:

  • Industrial accidents: 1 or more deaths, or 10 or more people injured needing 2+ months of treatment at the same time
  • Public accidents: accidents harming the general public with 1 or more deaths or 10+ injuries
  • 1 or more deaths or 10+ people getting sick at the same time from acute poisoning
  • 3 or more deaths within 1 year from work-related diseases

📕 Business Leaders' Duties and Punishment

• Business leaders must build safety management systems. Main duties include:

  • Setting up safety management organizations and assigning dedicated staff
  • Planning and spending budgets for safety
  • Setting safety goals and making plans
  • Creating and following prevention measures when major accidents happen
  • Managing safety at subcontractors and related companies
  • Taking management actions needed to follow safety laws

• Punishment for major accidents has become stronger. Punishment includes:

  • Individual punishment: 1+ years in prison or fines up to 1 billion won
  • Company punishment: fines up to 5 billion won (1 billion won per death, 150 million won per injury)
  • Both individuals and companies can be punished at the same time
  • Statute of limitations is 7 years from the accident date
  • Much heavier punishment than previous workplace negligence crimes

📕 Current Status and Recent Changes

• Various changes have appeared since the law started. Main developments include:

  • 24 people were prosecuted in the first year (2022), but this increased to 60 in 2023.
  • Most prosecutions are in construction and manufacturing, with more prison sentences being given.
  • Companies have greatly increased safety investments and expanded safety departments.
  • Demand for safety management system consulting has surged.

• The problem of small workplace blind spots continues. Main issues include:

  • Workplaces with fewer than 5 workers are not covered by the law, and workplace deaths at these places are actually increasing.
  • Small workplaces lack the ability and resources for real safety management.
  • Labor groups and civil society demand expanding coverage to all workplaces.
  • The government is considering gradual expansion, but small business groups worry about the burden.

Main Challenges and Issues

1. Eliminating blind spots: Need to expand protection to workplaces with fewer than 5 workers, platform workers, etc.
2. Burden of proof: Need to clarify standards for proving whether business leaders fulfilled safety duties
3. Small business support: Need more support for small companies that lack ability to build safety systems
4. Consistent punishment: Need consistent and predictable punishment levels for similar accidents
5. Prevention effects: Need policy focused on prevention rather than just punishment

3️⃣ Implementation Effects and International Comparison

✅ Domestic Implementation Effects and Status

• Some effects have appeared since the law started. Main effects include:

  • Industrial accident deaths were 874 in 2022, up from 828 the previous year, but decreased to 837 in 2023.
  • Large companies and public organizations have greatly increased safety investments and safety staff.
  • Companies now pay more attention to subcontractor safety management.
  • Hiring of safety managers has surged, and demand for related education has greatly increased.

• Different industries show different patterns. Industry status includes:

  • Construction: Most prosecution cases occurred here, with the most active safety system improvements.
  • Manufacturing: Smart safety technology adoption and dangerous process improvements are happening.
  • Transportation: Investment in preventing overwork driving and improving vehicle safety equipment has increased.
  • Services: Relatively low interest, but safety management at multi-use facilities is strengthening.

✅ Comparison with Major Countries

• Advanced countries have operated similar laws for a long time. Major countries' systems include:

  • UK: The 1974 Health and Safety at Work Act specified criminal responsibility for management, and the 2007 'Corporate Manslaughter Act' strengthened management punishment.
  • Germany: Industrial safety laws comprehensively regulate employers' safety duties, with criminal punishment possible for violations.
  • Japan: The 2006 revision of the Industrial Safety and Health Act strengthened punishment for companies and management.
  • France: The Labor Code specifies employers' safety duties and makes them criminally responsible for violations.

• Korea's law has reached international levels. Lessons from international comparison include:

  • Punishment levels are similar to or sometimes stronger than advanced countries.
  • However, coverage (5+ workers) is still limited.
  • For prevention-focused safety culture, support policies are important along with punishment.
  • Korea's safety support system for small businesses is lacking compared to advanced countries.

4️⃣ Related Terms

🔎 Major Accident

• A major accident means an industrial accident that causes death or serious injury.
• A major accident refers to an industrial accident at a workplace that causes death, serious injury, or disease. The Severe Accident Punishment Act defines this with specific standards.
• Standards for major accidents include: First, 1 or more deaths from industrial accidents. Second, 10 or more people injured needing 2+ months of treatment from the same accident. Third, 3 or more deaths within 1 year from work-related diseases. Fourth, 1 or more deaths or 10+ people getting sick at the same time from acute poisoning.
• Major accidents are seen not as simple accidents, but as preventable disasters caused by lack of safety management systems or neglect of safety duties by management. Therefore, when major accidents happen, both individual workers' or field managers' fault and business leaders' systematic responsibility are questioned.

🔎 Safety Management System

• A safety management system means a system for systematically managing workplace safety and health.
• A safety management system refers to a comprehensive management system built to protect workers' safety and health at workplaces. This goes beyond simple safety rules or equipment installation to mean a culture and system where the entire organization prioritizes safety.
• Key elements of safety management systems include: First, management's declaration of safety commitment and leadership. Second, setting up dedicated safety organizations and staff. Third, setting safety goals and making plans. Fourth, systematically identifying risk factors and taking improvement measures. Fifth, operating worker education and participation programs. Sixth, analyzing accident causes and establishing prevention measures when accidents happen.
• Safety management systems can be built using international standards like ISO 45001, and it's important to ensure effectiveness through continuous improvement and inspection. The Severe Accident Punishment Act requires business leaders to build such systems.

🔎 Industrial Accident

• An industrial accident means worker injury, disease, or death related to work.
• An industrial accident refers to injury, disease, disability, or death that happens to workers while working due to work-related reasons. Simply put, it means getting hurt, sick, or dying while working.
• Industrial accidents are divided into two types. First are work-related accidents, like suddenly getting caught in machines or falling while working. Second are work-related diseases, like occupational diseases or death from overwork that develop over long periods. Work-related accidents also include commuting accidents under certain conditions.
• For industrial accidents to be recognized, there must be a significant causal relationship between work and the accident. If recognized as an industrial accident under the Industrial Accident Compensation Insurance Act, workers can receive compensation including medical expenses, sick leave benefits, disability benefits, and survivor benefits. Korea's industrial accident death rate is still high among OECD countries, making strong prevention policies like the Severe Accident Punishment Act necessary.

5️⃣ Frequently Asked Questions (FAQ)

Q: Our company has fewer than 5 workers. Does the Severe Accident Punishment Act not apply to us at all?

A: Currently, workplaces with fewer than 5 workers are not covered by the Severe Accident Punishment Act. But it's not completely unrelated. First, existing safety laws like the Industrial Safety and Health Act still apply. Second, coverage is likely to expand through future law revisions. Labor groups and civil society continuously demand expanding coverage to all workplaces. Third, even workplaces with fewer than 5 workers can face civil damage liability or criminal responsibility under existing laws like workplace negligence causing death or injury if safety accidents happen. Fourth, if the main contractor is subject to the Severe Accident Punishment Act, subcontractor workplaces with fewer than 5 workers can be indirectly affected. Therefore, even if not subject to the law, basic safety management is necessary. It's good to actively use government safety support programs for small workplaces. Also, participating in technical support or education programs from industry-specific safety organizations is important for building safety capabilities.

Q: If a major accident happens, is the business leader automatically punished?

A: Business leaders are not automatically punished just because a major accident happened. Whether they're punished depends on whether the business leader properly fulfilled their safety duties. If they built the safety management system required by law, invested necessary staff and budget, and followed safety laws, they can avoid punishment. Specifically, it's important whether they properly took measures like setting up dedicated safety organizations, conducting regular risk assessments, providing worker safety education, supplying safety equipment, and improving risk factors. Also, if the accident was caused by factors the business owner couldn't control, like workers' intentional acts, self-harm, or natural disasters, they can be excluded from punishment. However, just building a 'formal' safety management system is hard to avoid liability - what matters is whether safety duties were 'substantially' fulfilled. Therefore, it's important to create and operate safety management systems that actually work in the field, not just on paper.