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Industrial Fatality | Company H Fined KRW 260 Million for the Deaths of Five Prime and Subcontractor Workers

Company H, where an industrial fatality occurred, was found through a special inspection by the Ministry of Employment and Labor to have violated 61 provisions of laws including the Occupational Safety and Health Act, and it received an administrative fine of KRW 265.55 million.

CONTENTS
  • 1. Industrial Fatality, What Were the Detailed Circumstances?
    • - Industrial Fatality, What Are the Relevant Laws?
  • 2. Industrial Fatality, What Was the Court's Determination?
  • 3. Industrial Fatality, Daeryun's Strategy

1. Industrial Fatality, What Were the Detailed Circumstances?

Company H, where the industrial fatality occurred, is a defense contractor that plays a key role in the defense industry and carries out work related to the construction of naval vessels.

This year, a total of five workers died at Company H.

An employee of a partner company died in a gas explosion accident, and in the same month a diver belonging to another partner company died during work.

In response, the Ministry of Employment and Labor conducted a nine-day special inspection of Company H and 102 partner companies, and as a result, it detected 61 violations of the law.

The principal violations included numerous serious problems that could threaten the lives and safety of workers, such as the failure to install safety railings, inadequate fall protection measures, and the failure to indicate the rated load during work with heavy objects.

However, even after the special inspection, a subcontractor worker died from symptoms suspected to be a heat-related illness, and following that, a worker who had been working until late at night at the prime contractor's request fell from a height of 32 meters and died.

The labor union claimed that the cause was the failure to properly provide fall prevention facilities, such as safety railings, while night work was being performed.

Industrial Fatality, What Are the Relevant Laws?

🔗An industrial fatality refers to an accident in which a worker dies as a result of an industrial accident. We will explain the liability that a business operator bears when an industrial fatality occurs.

■ Civil Liability

When an industrial fatality occurs, if the business operator's negligence is recognized, a claim for damages based on tort under the Civil Act is possible. However, if the worker's bereaved family cannot prove the business operator's negligence, they cannot claim damages based on tort, and the business owner need not bear civil liability.

■ Criminal Liability

If the cause of the industrial fatality is confirmed to be the business owner's violation of the duty to take safety and health measures, the business owner may be subject to criminal punishment.

If similar industrial accidents are repeated or multiple victims arise, aggravated punishment may be imposed, and if the offender is a multiple offender or a repeat offense within five years is confirmed, the sentence becomes even higher.

In 2023, the Ministry of Employment and Labor announced its "Comprehensive Plan for Occupational Safety and Health Supervision" and stated that it would conduct a "special inspection" of workplaces where two or more people die at the same time or where three or more fatal accidents have occurred within the past year.

It also stated that if a serious accident occurs again within five years after a sentence for a serious accident becomes final, it would apply aggravated punishment (1.5 times) for charges of violating laws including the Occupational Safety and Health Act.

2. Industrial Fatality, What Was the Court's Determination?

As a result of the special inspection conducted following the industrial fatality, the Ministry of Employment and Labor imposed on Company H 44 corrective measures and 46 judicial measures, as well as 15 administrative fines totaling KRW 265.55 million.

Such accidents at a defense contractor can lead to a decline in the company's reliability and disruptions in the production of defense materials, so the National Assembly stated that it would conduct a parliamentary inspection of Company H and demand a thorough investigation along with effective preventive measures.

3. Industrial Fatality, Daeryun's Strategy

We have analyzed a case in which an industrial fatality occurred and the company was assessed an administrative fine of approximately KRW 260 million by the Ministry of Employment and Labor.

When an industrial fatality occurs, the best approach for a business owner is to seek the assistance of an expert regarding the method of handling the aftermath.

When an industrial fatality occurs in a situation that could have been sufficiently prevented, the legal liability may grow, so preparation for this is necessary, and above all, to prevent an industrial fatality, it is also necessary to review matters in advance so that there are no acts that violate the duty to take safety and health measures.

Daeryun Law Firm LLP operates a 🔗Labor and Industrial Accident Group to help business owners promptly prepare responses to situations that may arise when an industrial fatality occurs and to assist with the conduct of the relevant procedures.

If you need an expert's legal assistance in connection with an industrial fatality, you are welcome to consult directly with an attorney at Daeryun who handles labor matters.

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