Serious Accidents Punishment Act | A Fine Imposed in the First Case Charged Under the Serious Accidents Punishment Act in Chungbuk

The circumstances under which the trial concerning the Serious Accidents Punishment Act was held are as follows.

At a factory in Chungbuk, A, the representative of a subcontractor, caused a crane wireless controller to malfunction, and a subcontractor worker in his seventies was caught in the machinery and died.

As a result of this accident, the representative and the corporation of the prime contractor, two members of its safety management team, and the representative of the subcontractor were indicted on charges of violating the Serious Accidents Punishment Act (industrial accident causing death) and violating the Occupational Safety and Health Act.

This accident occurred less than a month after the Serious Accidents Punishment Act took effect, and it is the first case of indictment for a serious accident in Chungbuk.

The prosecution pointed out that, although the prime contractor had formed a team to prevent serious accidents, five of the team's six members held other concurrent duties, so it was difficult to regard the team as a substantive “dedicated organization,” and that the company had failed to fulfill its safety obligations, including by not properly conducting risk assessments during the work process.

The defendants countered that the deceased worker had ordinarily used a path other than the designated entrance, and that A, the subcontractor's representative who caused the accident, had caused the wireless controller to malfunction, so this was an accident that occurred under unusual circumstances, and that they had sufficiently fulfilled their safety obligations.

The court that heard the trial concerning the Serious Accidents Punishment Act did not accept A's assertion that he had fulfilled his safety obligations.

The court found that A had been negligent in preventing safety accidents, including by failing to properly conduct risk assessments.

Emphasizing the purpose of the Serious Accidents Punishment Act, the court explained, “it is necessary to hold managing officers strictly accountable in order to prevent accidents from recurring in the workplace.” The court, however, determined the sentences in consideration of the fact that the defendants had reached a settlement with the bereaved family and had worked to fulfill their safety obligations after the accident.

Accordingly, the court imposed a fine of 30 million won on the representative of the prime contractor and a fine of 100 million won on the corporation, and it imposed suspended sentences (a suspended sentence under Korean law, broadly comparable to a suspended sentence or probation in common-law systems, under which the conviction loses its effect once the suspension period passes without incident) of imprisonment with labor and imprisonment without labor, respectively, on the two members of the prime contractor's safety management team and the representative of the subcontractor.

This is a district court judgment that imposed a fine on a company representative charged for the first time in Chungbuk in connection with the Serious Accidents Punishment Act, and it can be regarded as a significant case at a time when the application of the Serious Accidents Punishment Act is gaining momentum.

The Serious Accidents Punishment Act is a system that took effect on January 27, 2022.

After its enactment, a worker died at a quarry in 2022, giving rise to the first case investigated for a violation of the Serious Accidents Punishment Act.

Subsequently, a mass toxic-infection incident in the Busan area became the first case of indictment under the Serious Accidents Punishment Act, and recently, in 2024, the first case of detention under the Serious Accidents Punishment Act was announced, so the cases applying the Serious Accidents Punishment Act are increasing.

Accordingly, business owners should thoroughly familiarize themselves with the contents of the Serious Accidents Punishment Act and work to prevent accidents through periodic legal advice.

The Serious Accidents and Industrial Safety Group of Daeryun Law Firm LLP, through attorneys experienced in industrial accident matters, provides legal advisory services on the fulfillment of safety and protective obligations for clients' workplaces, so if you would like a consultation, you are welcome to visit Daeryun.