Serious Accidents Punishment Act Investigations and Executive Response

When an accident is a serious industrial accident

Since January 27, 2024, the law also applies to workplaces with 5 or more and fewer than 50 regular workers (including construction projects with a contract value under KRW 5,000,000,000). Even if the accident involves a subcontractor's worker, the management executive of the principal contractor is also responsible if the principal contractor actually controlled, operated or managed the facilities, equipment or place.

Safety and health duties a management executive must fulfill

• Set safety and health goals and a management policy for the business or workplace
• Set up a dedicated organization to oversee safety and health work (at or above a certain size)
• Prepare procedures to identify and improve hazards and risk factors, and inspect them at least once per half-year
• Draw up and spend a budget for safety and health personnel, facilities and equipment
• Give authority and budget to the safety and health manager and others, and evaluate them at least once per half-year
• Assign specialist staff such as safety managers and health managers
• Prepare a procedure for hearing workers' opinions, and inspect it at least once per half-year
• Prepare a manual for work stoppage, evacuation and rescue measures when a serious accident occurs, and inspect it at least once per half-year
• For contracting, service and outsourcing, set criteria and procedures to evaluate the contractor's safety and health capability

Investigators look at whether these items were actually carried out, not just whether they exist on paper. Records showing that risks found in inspections were improved and that the budget was actually spent are the key.

How the investigation proceeds right after an accident

1. Accident occursRescue measures, work stoppage, and report without delay to the competent Regional Employment and Labor Office (지방고용노동관서)
2. Site inspection and work stoppage orderOn-site investigation by the Ministry of Employment and Labor (고용노동부), the police and the Korea Occupational Safety and Health Agency (안전보건공단)
3. Search and seizureSafety and health documents, electronic data, approval documents, mobile phones
4. Questioning of related personsSummoned in this order: site manager, safety manager, safety and health manager, management executive
5. Referral and indictmentThe Ministry of Employment and Labor refers the case under the Serious Accidents Punishment Act (중대재해 처벌 등에 관한 법률) and the Occupational Safety and Health Act (산업안전보건법); the police refer it as negligence in the course of duties causing death

If people at the site give different accounts right after the accident, those differences directly lead to suspicion from investigators. Have people confirm the facts first before they give statements, and consider appointing separate lawyers where the interests of the company and of individuals may differ.

Issues disputed at trial

Most of the decided cases so far resulted in suspended prison sentences, but there are also cases of actual prison sentences with detention in court. Along with settlement with the bereaved family, how the workplace's overall safety system was changed after the accident is weighed heavily in sentencing.

What to prepare before an accident

A workplace with fewer than 50 workers does not need a dedicated organization, but identifying and improving hazards and risk factors, hearing workers' opinions, and an emergency response manual are required regardless of size. The smaller the workplace, the more important it is to have records showing that the representative personally inspected and approved these matters.

Reviewing the safety and health management system requires legal review and on-site safety inspection together. If the documents do not match the site, they can instead become evidence of merely formal compliance after an accident.

Penalty provisions for serious accidents

If the same offense is committed again within 5 years after a sentence becomes final, the punishment is increased by up to 1/2 (one-half). If a serious accident results from the management executive's intent or gross negligence, the executive is also liable for punitive damages of up to 5 times the amount of damage.

Checklist right after a serious accident

• First, rescue the injured and take measures to prevent further harm.
• Report to the competent Regional Employment and Labor Office (지방고용노동관서) without delay.
• Do not alter the accident site, and record it with photos and video.
• Find the risk assessment, safety training and inspection records, and preserve the originals.
• Tell the people involved to state only facts they have directly confirmed, not guesses.
• Contact the bereaved family and support the funeral sincerely, and conduct settlement discussions through a representative.