Serious Industrial Accident

Out of an awareness that repeated large-scale industrial accidents could no longer be left unaddressed, Korea enacted the Serious Accidents Punishment Act and has been enforcing it in earnest since 2022.

The Serious Accidents Punishment Act directly imposes substantial and specific safety and health assurance duties on business owners and responsible managing officers, and where these are breached and a serious accident occurs, it strengthens both criminal punishment and damages liability at the same time.

Representative occupational diseases regarded as serious industrial accidents include the following.

• Central nervous system damage and acute poisoning caused by exposure to vinyl chloride

• Acute poisoning from exposure to hazardous substances such as lead, mercury, chromium, and benzene

• Loss of consciousness and pulmonary edema caused by exposure to hydrogen sulfide

• Legionellosis caused by contaminated cooling water

• Health disorders caused by exposure to high or low atmospheric pressure

• Oxygen deficiency in locations with insufficient oxygen concentration

• Acute radiation syndrome caused by ionizing radiation

• Heatstroke caused by extreme heat or high-temperature work

For these occupational diseases, safety measures and preventive training must be carried out thoroughly in advance.

Domestic industrial sites have complex and frequent contracting structures.

Under the Serious Accidents Punishment Act, even where the principal contractor has awarded a contract, service, or consignment, the same safety and health duties toward the subcontractor's workers apply.

However, this is limited to the equipment, places, and tools that the principal contractor substantially controls, operates, and manages.

A subcontractor management manual, supplier evaluation criteria, criteria for calculating the construction period and management costs, and the like must be prepared in advance and inspected at least once every half year.

If a serious industrial accident occurs because the duty to secure safety and health was not fulfilled, severe criminal punishment may be imposed on the business owner and the management official.

Acquittal 1 - Death During Work on a Compression Molding Machine

• Facts: A subcontractor's worker died after being struck in the head by a hand tool ejected from a compression molding machine
• Issue: Whether the prime contractor's representative violated the duty to establish a dedicated safety organization and to identify hazardous and dangerous factors
• Conclusion: The cause of the accident was the worker's use of the hand tool for a purpose other than intended

The court held that an unusual accident caused by use for an unintended purpose was not foreseeable, denied causation as to both the prime contractor's and the subcontractor's representatives, → and pronounced an acquittal

Acquittal 2 - Death by Overturning of a Dump Truck at a Coal Receiving Yard

• Facts: A subcontractor's worker died after being buried under coal when a dump truck bed overturned
• Issue: Whether the prime contractor's representative violated the duty to identify hazardous and dangerous factors and to take preventive measures
• Conclusion: The main causes were the dump truck driver's misoperation and the worker's entry into the work zone

The court found that the overturning of the dump truck was difficult to foresee and exceeded the scope of the duty to take preventive measures, → and entered an acquittal

The two cases reaffirmed that, under the Serious Accidents Punishment Act, a conviction requires that a ‘proximate causal relationship' be established between the management official's breach of the duty to secure safety and health and the accident.

In particular, they show that for an unforeseeable, unusual accident, causation between the breach of duty and the result may be denied.

If the business owner violated the duty to secure safety and health intentionally or through gross negligence, the injured worker may file a claim for damages for tort under the Civil Act.

In this case, liability to compensate for up to five times the amount of damages may arise.

The court comprehensively considers the degree of intent and negligence, the type and substance of the breaching conduct, its duration and frequency, the scale of the damage that occurred, the economic benefit gained from the violation, the financial condition of the business owner and others, and subsequent efforts toward remedying the harm and preventing recurrence.

In addition, in serious industrial accident cases, the court may examine the statements of the victim and the bereaved family ex officio, and it strengthens the fairness of the trial through the system of expert advisors.

The government carries out measures such as establishing comprehensive plans to prevent serious industrial accidents, analyzing causes, providing on-site technical support, and conducting preventive training.

In addition, once a sentence becomes final, the name of the worksite, the details of the accident, and similar information may be made public.

The mere fact that a serious industrial accident has occurred directly harms a company's image.

This may lead not only to social criticism but also to administrative sanctions such as an increase in the industrial accident insurance premium rate, business suspension or operation suspension, restrictions on government awards, or point deductions in pre-qualification screening for bidding.

When a serious industrial accident occurs, our firm's Industrial Safety and Serious Accidents Group immediately activates a task force composed of attorneys specializing in industrial accidents, criminal matters, and corporate matters, together with labor consultants, to support companies in managing risk.

We provide legal services such as advisory on responding to the Serious Accidents Punishment Act, reviewing the duties of management officials, building risk assessment procedures, responding to investigations and trials, and designing safety management systems.

Through nearby branch offices where consultations are available on weekends and public holidays, you may receive prompt and practical solutions.

In particular, to improve convenience for corporate clients, we have set up a video consultation system, which you may keep in mind when requesting a consultation.

▶Advisory on distinguishing the entity directing work in a contracting structure
▶Preparing methods for risk assessment and establishing a safety management plan
▶Building a documented inspection system for the performance of duties by the safety and health manager
▶Securing records and evidence of advance safety meetings and training content