🚨 Serious Accident Punishment Act

Today Korean Social News for Beginners | 2025.08.29

0️⃣ Investigation Delays and Lenient Punishments Raise Effectiveness Concerns

📌 Serious Accident Punishment Act 3.5 Years Later…73% of Violation Cases Still Under Investigation

💬 According to a survey by the National Assembly Research Service, 73% of Serious Accident Punishment Act violation cases are still under investigation, and even when guilty verdicts are issued, over 85% end in suspended sentences. The average fine of 70 million won is much lower than the legal maximum of 5 billion won, leading to criticism about weak punishment. This has raised concerns that companies focus on post-incident responses rather than safety investments. Labor groups and experts are demanding stronger investigation capabilities and improved sentencing standards. The law's original purpose of establishing a proactive safety management culture in companies remains distant.

💡 Summary

• The Serious Accident Punishment Act requires company executives to ensure safety and health measures, imposing criminal punishment when fatal accidents occur.
• Despite being in effect for 3.5 years, 73% of violation cases are still under investigation, and most guilty verdicts result in suspended sentences.
• Critics argue that punishment levels are significantly lower than legal maximums, reducing the incentive for companies to invest in safety.

1️⃣ Definition

The Serious Accident Punishment Act is a law that holds corporate executives and companies criminally responsible when serious industrial accidents or public disasters occur at companies or institutions. The official name is "Act on the Punishment of Serious Accidents" and has been in effect since January 27, 2022.

This law clarifies executive responsibility that was limited under the existing Occupational Safety and Health Act. When fatal accidents occur due to failure to fulfill safety and health obligations, business owners face at least 1 year in prison or fines up to 1 billion won, while corporations can face fines up to 5 billion won.

💡 Why is this important?

• It forces companies to prioritize worker safety over cost reduction.
• It clearly defines direct legal responsibility of executives for safety accidents.
• It aims to reduce social costs from industrial accidents and create safe working environments.
• It serves as an important legal mechanism to protect workers' and citizens' right to life.

2️⃣ Main Content and Current Application Status of the Serious Accident Punishment Act

📕 Core Content and Punishment Regulations

• Legal obligations for executives' safety and health measures have been established. Main contents include:

  • Business owners or executives must secure necessary personnel, budget, and facilities for accident prevention.
  • They must establish safety and health management systems and implement related measures.
  • When accidents occur, they must immediately take necessary actions and establish recurrence prevention plans.
  • When serious accidents occur, executives face at least 1 year in prison or fines up to 1 billion won.

• The scope of serious accidents is clearly defined. Main criteria include:

  • For industrial accidents: 1 or more deaths, or 2 or more injured requiring treatment for 6 months or more from the same accident.
  • For public disasters: 1 or more deaths from raw materials, products, or public facilities, or 10 or more injured from the same cause.
  • Corporations can face fines up to 5 billion won.
  • Repeat offenders or those who intentionally neglect safety measures face heavier punishment.

📕 Implementation Status and Problem Analysis

• Investigation delays are pointed out as a serious problem. Main status includes:

  • According to the National Assembly Research Service survey, 73% of Serious Accident Punishment Act violation cases are still under investigation.
  • Lack of expertise in investigation agencies and complex causal relationships are main causes of delays.
  • Average investigation period is 2-3 times longer than general criminal cases.
  • Victims and families continue to experience anxiety while waiting for proper punishment.

• Punishment levels fall short of the law's intent. Main problems include:

  • Even when guilty verdicts are issued, over 85% end in suspended sentences, showing insufficient actual punishment effects.
  • Fine amounts average 70 million won, significantly lower than the legal maximum of 5 billion won.
  • Suspended sentence rate is more than double the 37% rate for general criminal cases, raising "preferential treatment" concerns.
  • This causes companies to focus only on post-incident responses rather than preventive investments.

💡 Main Problems with the Serious Accident Punishment Act

1. Investigation Delays: 73% of violation cases still under investigation, insufficient prompt processing
2. Lenient Punishments: Over 85% of guilty verdicts result in suspended sentences, lacking substantial punishment effects
3. Low Fine Levels: Average sentences significantly lower than legal maximums, questionable deterrent effects
4. Insufficient Investigation Capacity: Lack of specialized investigation personnel and systems causing processing delays
5. Limited Corporate Awareness Improvement: Passive safety management focused on post-incident responses rather than prevention

3️⃣ Law Improvement Plans and Future Tasks

✅ Strengthening Investigation Capacity and System Improvements

• Establishing specialized investigation agencies and expanding personnel is necessary. Main improvement directions include:

  • Forming dedicated investigation teams for serious accidents to enhance expertise and shorten investigation periods.
  • Building professional investigation systems involving industrial safety experts, forensic doctors, and engineering specialists.
  • Strengthening cooperation systems between investigation agencies to prevent duplicate investigations and improve efficiency.
  • Using digital forensics and scientific investigation techniques for accurate and prompt evidence collection.

• Improving sentencing standards and ensuring punishment effectiveness is required. Main plans include:

  • Adjusting court sentencing standards upward to reduce suspended sentence rates and increase prison sentence rates.
  • Introducing differential fine systems considering company size and revenue.
  • Creating standards that actively reflect safety investment implementation and recurrence prevention efforts in sentencing.
  • Strengthening civil remedies through punitive damage compensation systems.

✅ Establishing Corporate Safety Culture and Prevention Systems

• Building proactive corporate safety management systems is key. Main tasks include:

  • Securing dedicated safety management organizations and budgets for systematic safety management.
  • Focusing on accident prevention through regular risk assessments and safety education.
  • Establishing communication systems that guarantee worker participation and opinion collection on safety.
  • Creating integrated safety management systems including partner companies and subcontractors.

• Government support and supervision systems must also be improved. Main directions include:

  • Expanding safety management consulting and financial support especially for small and medium enterprises.
  • Strengthening Korea Occupational Safety and Health Agency's guidance and inspection functions while shifting to prevention-focused approaches.
  • Introducing incentive systems for excellent safety management companies to encourage voluntary improvements.
  • Discovering and spreading excellent safety management cases to raise overall safety culture levels.

4️⃣ Related Term Explanations

🔎 Occupational Safety and Health Act

• The Occupational Safety and Health Act is the basic law for preventing industrial accidents.
  • The Occupational Safety and Health Act is a law that defines business owners' obligations to ensure safety and health and workers' rights to protect worker safety and health in industrial sites. Enacted in 1981 and amended several times, it serves as the parent law for the Serious Accident Punishment Act.
  • Main contents include: First, business owners' safety and health measure obligations, including creating safe work environments and providing protective equipment. Second, mandatory safety and health education for workers and health examination requirements. Third, permit and reporting systems for dangerous work and qualification requirements. Fourth, mandatory appointment of safety and health managers and establishment of safety and health management systems.
  • The difference with the Serious Accident Punishment Act is that while the existing Occupational Safety and Health Act mainly held field managers or safety personnel responsible, the Serious Accident Punishment Act includes top executives as punishment targets. This expects to encourage executive attention and investment in safety management.

🔎 Suspended Sentence

• A suspended sentence is a system that postpones sentence execution.
  • A suspended sentence means postponing execution of a court-imposed sentence for a certain period and exempting the sentence if no other crimes are committed during that period. Regulated under Article 62 of the Criminal Act, it applies to imprisonment or confinement of 3 years or less.
  • Requirements for suspended sentences include: First, receiving imprisonment or confinement of 3 years or less. Second, having no previous record of confinement or higher punishment. Third, being recognized as having room for improvement and low risk of repeat offense. Fourth, judging that not executing the sentence is appropriate considering the crime's circumstances and defendant's environment.
  • The high suspended sentence rate of over 85% in Serious Accident Punishment Act cases is criticized for reducing the law's intended strong punishment and prevention effects, though it considers factors like many first-time offenders and early implementation period. This has led to discussions on improving sentencing standards and strengthening substantial punishments.

🔎 Safety and Health Management System

• A safety and health management system is a company's systematic safety management system.
  • A safety and health management system means a management system that ensures systematic and continuous planning, implementation, inspection, and action regarding safety and health in workplaces. The Serious Accident Punishment Act specifies building this system as an obligation for executives.
  • Main components include: First, top management's safety and health policy declaration and leadership. Second, setting safety and health goals and establishing detailed action plans. Third, securing sufficient budget and specialized personnel allocation. Fourth, conducting regular risk assessments and implementing improvement measures. Fifth, establishing worker participation and communication systems.
  • Effective safety and health management system establishment requires substantial safety culture establishment beyond mere formal compliance. This needs strong executive will, continuous investment, and active worker participation.

5️⃣ Frequently Asked Questions (FAQ)

Q: What company sizes does the Serious Accident Punishment Act apply to?

A: Currently applies to all workplaces with 5 or more regular workers.

• The Serious Accident Punishment Act has gradually expanded its scope. First, when initially implemented in January 2022, it only applied to workplaces with 50+ regular workers and public institutions. Second, since January 2024, it expanded to workplaces with 5-49 regular workers. Third, for construction, it applies to projects worth 5 billion won or more (2 billion won or more since 2024). Fourth, workplaces with fewer than 5 workers are currently not subject to the law, but discussions continue about future expansion.
• While gradual application considered small workplaces' lack of safety management capacity and financial conditions, voices demanding full application argue that worker life and safety shouldn't depend on workplace size.

Q: Who gets punished when serious accidents occur?

A: Both executives and corporations are subject to punishment, with responsibility scope determined by individual circumstances.

• Punishment targets under the Serious Accident Punishment Act are divided into individuals and corporations. First, individual punishment targets include business owners, executives (CEOs, etc.), and public officials or corporate employees. When safety and health obligation violations cause serious accidents, they face at least 1 year imprisonment or fines up to 1 billion won. Second, for corporate punishment, corporations face fines up to 5 billion won. Third, under joint punishment provisions, both individuals and corporations can be punished simultaneously.
• However, corporations can avoid punishment by proving they did not neglect reasonable care and supervision regarding the relevant work. Actual punishment and severity are determined by comprehensively considering safety management negligence levels, accident scale, and recurrence prevention efforts.

Q: What business impacts occur when punished for Serious Accident Punishment Act violations?

A: Beyond criminal punishment, various sanctions and credit rating drops broadly affect overall management.

• Serious Accident Punishment Act violations cause various follow-up impacts beyond direct criminal punishment. First, public project bid restrictions prevent participation in government or local government projects for certain periods. Second, various license restrictions or cancellations can directly impact business operations. Third, corporate credit rating drops cause difficulties in bank loans or investment attraction. Fourth, media coverage and social reputation damage significantly harm brand image and customer trust.
• Long-term indirect damages include difficulties recruiting talent, deteriorating partner relationships, and insurance premium increases. Therefore, proactive safety management through prevention is much more advantageous for companies than post-incident punishment.

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