Case Analysis / Legal Updates
Industrial Accident Death | Representative Sentenced to Imprisonment and Corporation Fined KRW 2 Billion After a Serious Accident Death Caused by Inadequate On-Site Safety Management
In this industrial accident death case, the court held the company strictly liable and imposed the highest fine among the Serious Accidents Punishment Act (a 2022 Korean statute imposing criminal liability on business operators for serious safety accidents, with no direct common-law equivalent) cases sentenced to date.
1. Industrial Accident Death, the Detailed Circumstances?
The site where the industrial accident death occurred was a shipyard.
The victim was performing ship repair work at the worksite of Company S, and fell to his death from a work platform at a height of 10 meters.
At the time, basic safety facilities such as a fall protection net or safety harness anchorage equipment had not been installed at the work site.
It was also found that Company S had not verified whether the worker was wearing a safety harness and had not provided fall prevention facilities, which led to the accident.
Industrial Accident Death, the Applicable Statutes?
When a fatality results from an industrial accident, it constitutes a serious industrial accident.
🔗A serious industrial accident refers to an industrial accident in which ① a fatality occurs, ② two or more persons suffer injuries requiring at least six months of treatment, or ③ three or more persons develop an occupational disease within one year.
Where a serious industrial accident occurs, a person may be punished if the following obligations were not complied with.
✔ Establishment and implementation of a safety and health management system necessary to prevent accidents
✔ Establishment and implementation of measures to prevent recurrence when an accident occurs
✔ Implementation of matters for which a central administrative agency or local government has ordered improvement or correction under the relevant statutes
✔ Managerial measures necessary to fulfill obligations under the safety and health statutes
2. Industrial Accident Death, the Court's Determination?
The District Court, which heard charges including violation of the Serious Accidents Punishment Act (causing death through an industrial accident) arising from the industrial accident death, found in this case that Company S's inadequate safety measures constituted a serious fault that caused the worker's death.
The court pointed out the defendant company's serious fault, stating that, "under Article 43 of the Occupational Safety and Health Act, the employer was required to install safety facilities in places where there is a risk of falling, but failed to do so, and as a result, a worker died." It emphasized in particular that the company had neglected safety facilities for the purpose of cutting costs.
The court also considered that two fatal accidents had occurred at Company S's worksite before this accident, and found that the company had taken on ship repair work at a low price without protective measures, which led to this accident.
The court stated, "Even though three workers died in industrial accidents within one year, the company showed a poor attitude, treating the matter as if it had suffered a loss, and demonstrated no sign of repentance* whatsoever, so there is all the more need to impose severe punishment," and it sentenced the representative of Company S to two years' imprisonment and ordered him taken into custody in the courtroom. The court also imposed on the corporation, Company S, a fine of KRW 2 billion.
*Sign of repentance: in the Criminal Act and criminal policy, a term referring to the state of mind in which a suspect, defendant, or convicted person repents of his or her wrongdoing
3. Industrial Accident Death, Daeryun's Strategy?
We have analyzed a case in which, following an industrial accident death, the court recognized the company's serious fault and imposed both imprisonment and a substantial fine under the Serious Accidents Punishment Act.
Regardless of whether the employer was at fault or the degree of any such fault, where a serious industrial accident occurs, the employer cannot avoid punishment.
A company in which a serious industrial accident occurs may suffer not only reputational harm but also a boycott, so the initial response is important. The company must clearly demonstrate that it did not neglect the safety regulations.
If you need assistance with a related matter, you are welcome to visit the 🔗Labor and Industrial Accident Group of Daeryun Law Firm LLP.
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