Rival parties are locked in last-minute negotiations over an industrial safety law that would impose fines of up to 5% of operating profit on construction firms and other companies where multiple or repeated fatal accidents occur.
Rep. Kim Gi-hyeon of the People Power Party introduced an amendment to the Occupational Safety and Health Act on the 1st of this month, according to the party. The bill is pending before a plenary session of the National Assembly. The amendment would keep the ceiling at 5% of operating profit but cap the total penalty at 5 billion won. "The People Power Party concluded that 5% of operating profit is excessive," said Lim Yi-ja, chair of the party's policy committee. "We will finalize the size of the fines after discussions."
The ruling Democratic Party of Korea takes a negative view of the opposition amendment. President Lee Jae-myung said at a Cabinet meeting last year that "strong economic sanctions have the greatest effect." That is why concerns have surfaced that reducing the size of the fines could dilute the government's firm commitment to cutting workplace fatalities. "The number of workplace fatalities has hit a record low since we declared war on industrial accidents, and if fines are scaled back, corporate vigilance could weaken," a Democratic Party official said.
According to the Ministry of Employment and Labor, 113 workers died in accidents subject to investigation in the first quarter of this year, across 98 cases, down 24 deaths, or 17.5%, from 137 deaths in 129 cases a year earlier. It was the lowest first-quarter death toll since the ministry began compiling the data in 2022.
The Democratic Party also argues that the burden on businesses has already been factored in, given that fines under the Occupational Safety and Health Act are calculated on operating profit rather than revenue. Other regulatory laws, such as the Clean Air Conservation Act, set fines at levels including 5% of revenue, according to the party.
Still, with companies continuing to raise concerns about the scale of the fines, the two sides could yet agree on a ceiling. "For large companies, the fines would mean coughing up hundreds of billions of won," a People Power Party official said. "The Democratic Party also appears uncomfortable with sticking to the original bill."
