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Category
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Sub-Category
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Key Points
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Reinforcement of Penalties for Serious Accidents
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Imposition of Economic Sanctions
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Introduce a punitive administrative surcharge system for businesses involved in serious accidents with three or more casualties annually (amendment to the Occupational Safety and Health Act (the “OSHA”))
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Add “multiple casualties annually” as a condition to suspend a business’s operation in addition to the current condition of “two or more casualties simultaneously” and reinforce the business suspension period under the Enforcement Decree of the Framework Act on the Construction Industry
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Establish a new provision in the OSHA to request cancellation of a construction’s registration in case of a third violation after two business suspension orders within past three years
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Include the occurrence of a serious accident as a justification for permit cancellation or business suspension
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Reflection in Credit Reviews, Capital Market Assessments, Etc.
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Reflect serious accident risk in loan interest rates, loan caps, insurance premiums, etc.
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Reinforce reviews by introducing safety evaluations in sales of new real estate unit guarantees or project finance loan guarantees
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Restrict participation in policy funds for businesses where serious accidents occurred repeatedly
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Mandate public disclosure of a serious accident or related criminal judgment under the Serious Accidents Punishment Act (the “SAPA”) by listed companies (for non-listed companies, the parent company must disclose)
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Reinforcement of Accident Inquiry and Investigation
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Establish a system for the MOEL to issue an emergency work suspension when imminent danger is deemed to exist to prevent severe accidents
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Enforce immediately without an opportunity for corrective action upon the detection of a mandatory safety and health measure violation during a general inspection
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Enhance (for OSHA violations) or newly establish (for SAPA violations) sentencing guidelines
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Reinforcement of Safety and Health for Suppliers and Participation of Workers
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Reinforcement of Safety and Health Costs and Mandatory Period in Service Contracts
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Codify principal’s duty to adequately calculate construction costs
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Expand the obligation to account for industrial safety and health management costs in the construction industry from principal to main contractor
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Expand the obligation to account for industrial safety and health management costs to include shipbuilding and other sectors
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Have the MOEL and Korea Fair Trade Commission (“KFTC”) conduct special inspections of unfair clauses shifting industrial safety and health costs, and increase applicable administrative surcharges
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Include construction period calculation criteria in private construction design documents
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Include weather-related disasters, such as heat waves, as grounds for construction period extensions
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Specification of Grounds for Removal of Public Institution Heads
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Establish a legal basis within the Act on the Management of Public Institutions, which will allow the removal of the responsible head in case of serious accidents caused by violations of safety management principles
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Reinforcement of Contractor Responsibility
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Formalize regular joint investigation on illegal subcontracting at construction sites of the MOEL or Ministry of Land, Infrastructure and Transport, and take rigorous measures such as point demerits and criminal penalties upon discovery
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Review reinforcement of standards for registration cancellation and the level of administrative penalties in case of an accident with casualties occurring from illegal subcontracting
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Clarify the details and procedures of the duty to select a qualified contractor under the OSHA, and impose sanctions upon violation
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Establish and reinforce legal liability for the principal, designer and supervisor, apart from the constructor
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Establishment of New Sanctions for Risk Assessment, Expansion of Disclosure and Workers’ Participation
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Disclose accident investigation reports to the public
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Regularly disclose the name of companies where serious accidents occurred to the public
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Implement a safety and health disclosure system (make it mandatory to disclose the status on a company’s accidents, reoccurrence prevention measures, safety and health management system, and investments in safety)
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Impose penalties for failing to conduct risk assessments or omitting mandatory procedures
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In case of risk assessment, mandate the participation of the workers of the work/process at issue and the disclosure of its results, and ensure participation of the workers’ representative
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Ensure the participation of contractors/subcontractors and their workers in the Industrial Safety and Health Committee
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Mandate the formation of a joint contractor/subcontractor industrial safety and health committee for public institutions, and businesses with 50 or more employees with subcontractors in industries such as shipbuilding, steel and automotive
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Expand the mandatory formation and operation of a contractor/subcontractor “Safety and Health Council” in the construction industry, from projects valued at KRW 12 billion or more to those valued at KRW 5 million or more
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Newly establish workers’ right to demand work suspension or corrective action
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Relax requirements for workers’ right to suspend work under the OSHA to “when there is a “concern” of an imminent risk of an industrial accident”
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Establish a new provision for criminal penalties in case of retaliation against a worker’s legitimate exercise of the right to suspend work
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Reinforcement of Other Regulations and Inspections
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Reinforcement of Technological and Human Resource Standards, Etc.
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Review a phased plan to mandate protective devices, such as human body detection sensors, for equipment such as forklifts and conveyors
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Expand in phases the current obligation to appoint safety and health managers in workplaces with 50 or more employees, taking into account the level of risk per industry
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Under the Act on Restriction on Special Cases Concerning Taxation, expand the scope of eligible safety facilities for Integrated Investment Tax Credit
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Reinforcement of Regulations on Foreigners, Special-Type Workers, Etc.
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Extend restrictions on employment of foreign workers from the current one year to three years for business owners in case of a fatal accident involving a foreign worker
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Restrict the employment of foreign workers for one year in case of a foreign worker suffering disease or injury from a serious accident
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Replace the unit of restriction on the employment of foreign workers in the construction industry from “workplace” to “business owner”
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Expand the scope of occupations and regulations applicable to the OSHA
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Implement health examinations for high-risk special-type workers, such as those engaged in night or parcel delivery work
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Under the Last-Mile Logistics Industry Development Act, mandate the enrollment of delivery workers in the commercial vehicle insurance and safety training
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Distribute task management guidelines by industries and occupations employing a large number of elderly workers
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Expand safety and health training tailored to elderly workers
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Information Sharing and Joint Inspection With Local Government and Private Sector
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Government: Expand inspection and supervision of high-risk workplaces and immediate enforcement upon discovery of a violation, establish new unscheduled site inspections and conduct joint supervision of workplaces with illegal dispatches and serious accidents
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Local government: Inspect and supervise small-scale workplaces with fewer than 30 employees
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Private sector: Strengthen regular patrols and technical guidance for micro-enterprises through private safety guardian agencies and private disaster prevention agencies
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