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Q

Why was the Serious Accident Act suddenly expanded?

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I run a medical device manufacturing company. I'm considering signing an export contract with a German company to export to Germany, and people around me say I should definitely get a contract legal review. Do I need to get one, and if so, where and how? Please let me know.

serious accident act

serious accident punishment act

A

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The expanded application of the Serious Accident Act stems from the government's policy need to prevent recurring serious industrial accidents at industrial sites and strengthen the responsibility of business owners.

The Serious Accident Act was enacted in 2021, and from 2022 it was first implemented for companies with 50 or more employees (or 5 billion won or more), while a 2-year grace period was provided for smaller companies through supplementary provisions.

In the past, fatalities due to inadequate safety measures occurred frequently mainly at subcontractors or small and medium-sized businesses, but it was difficult to substantively punish business owners or management personnel.

Accordingly, the Serious Accident Punishment Act, which was first implemented for large companies in January 2022, has been expanded to apply to workplaces with fewer than 50 full-time workers from January 2024.

The "safety and health management system" required by law is specifically specified in the Serious Accident Act.

Main contents include ▲discovering hazardous and risk factors and taking corrective measures ▲organizing safety and health management ▲designating dedicated personnel for safety and health-related duties ▲establishing procedures for worker education and gathering opinions ▲establishing measures and recurrence prevention plans in case of accidents.

This is not just a formal regulation but must actually be operating on-site, and if inadequate, it may be subject to criminal punishment when an accident occurs.

If a fatality occurs, the business owner shall be punished by imprisonment of one year or more or a fine of up to 1 billion won.

If injured persons or sick persons occur, imprisonment of up to 7 years or a fine of up to 100 million won may be imposed.


Therefore, it is very important to have a documented system in place and to periodically check whether it is being implemented.

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