South Korea passes law fining companies for repeated industrial accidents

The South Korean National Assembly has passed an amendment to the Occupational Safety and Health Act, which allows for fines of up to 5% of operating profits for companies that cause three or more worker deaths due to safety violations within a single year. The law is set to take effect six months after its official announcement.

Large construction firms are particularly affected by this change. Analysis suggests that eight of the top ten construction companies in South Korea could be subject to these penalties based on recent fatality trends, with estimated fines ranging between 20 billion and 25 billion won per company. The amendment also expands workers' rights to stop work in cases where there is a perceived risk of danger and allows subcontracted workers to request work stoppages directly from prime contractors.

This legislative move follows a significant rise in industrial accident claims within the construction sector. Data shows that industrial accident applications in construction have increased by nearly 30% over the last three years. Notably, claims related to occupational diseases, such as musculoskeletal disorders, have surged more than fourfold, rising from 4,542 cases in 2022 to 20,000 cases last year.