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Ministry of Employment and Labor’s Comprehensive Plan for Work Safety to Eradicate Serious Accidents

2026.01.21

On September 15, 2025, the Ministry of Employment and Labor (the “MOEL”), together with other ministries, announced the “Comprehensive Plan for Work Safety: Collaboration Amongst Workers, Management and Government for a Safe Workplace” (the “Comprehensive Plan”). Under this plan, the government aims to drastically reduce industrial accidents. The Comprehensive Plan outlines extensive and robust policies on four key areas: (i) enhanced support for prevention of safety blind spots, (ii) establishment of clear roles and responsibilities for companies/workers as key agents of safety, (iii) expansion of infrastructure for widespread adoption of work safety, and (iv) introduction of penalties to further promote the prevention of serious accidents. The following are the key points of the Comprehensive Plan:
 

Category

Sub-Category

Key Points

Reinforcement of Penalties for Serious Accidents

Imposition of Economic Sanctions

  • Administrative surcharge, business suspension or license revocation in case of repeated serious accidents

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”))

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

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

Include the occurrence of a serious accident as a justification for permit cancellation or business suspension

  • Reinforcement of restrictions on public bidding for workplaces with repeated serious accidents

Reflection in Credit Reviews, Capital Market Assessments, Etc.

  • Reflection of serious accident risk in credit reviews, surety, sale of units, etc.

Reflect serious accident risk in loan interest rates, loan caps, insurance premiums, etc.

Reinforce reviews by introducing safety evaluations in sales of new real estate unit guarantees or project finance loan guarantees

Restrict participation in policy funds for businesses where serious accidents occurred repeatedly

  • Reflection in capital market assessments, etc.

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)

Reinforcement of Accident Inquiry and Investigation

  • Promotion of mandatory compliance with safety and health measures

Establish a system for the MOEL to issue an emergency work suspension when imminent danger is deemed to exist to prevent severe accidents

Enforce immediately without an opportunity for corrective action upon the detection of a mandatory safety and health measure violation during a general inspection

Enhance (for OSHA violations) or newly establish (for SAPA violations) sentencing guidelines

  • Proceeding with speedy and rigorous investigation via collaboration with relevant agencies

Reinforcement of Safety and Health for Suppliers and Participation of Workers

Reinforcement of Safety and Health Costs and Mandatory Period in Service Contracts

  • Ensuring adequate costs for industrial safety and health

Codify principal’s duty to adequately calculate construction costs

Expand the obligation to account for industrial safety and health management costs in the construction industry from principal to main contractor

Expand the obligation to account for industrial safety and health management costs to include shipbuilding and other sectors

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

  • Provision of sufficient construction period

Include construction period calculation criteria in private construction design documents

Include weather-related disasters, such as heat waves, as grounds for construction period extensions

Specification of Grounds for Removal of Public Institution Heads

  • Reinforcement of responsibility for safety management

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

  • Safety management evaluations on entities including public institutions and subcontractors

Reinforcement of Contractor Responsibility

  • Prevention of illegal subcontracting

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

Review reinforcement of standards for registration cancellation and the level of administrative penalties in case of an accident with casualties occurring from illegal subcontracting

  • Selection of qualified contractor

Clarify the details and procedures of the duty to select a qualified contractor under the OSHA, and impose sanctions upon violation

Establish and reinforce legal liability for the principal, designer and supervisor, apart from the constructor

Establishment of New Sanctions for Risk Assessment, Expansion of Disclosure and Workers’ Participation

  • Expansion of information disclosure and improvement of risk assessment

Disclose accident investigation reports to the public

Regularly disclose the name of companies where serious accidents occurred to the public

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)

Impose penalties for failing to conduct risk assessments or omitting mandatory procedures

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

  • Integrated safety and health management of contractors and subcontractors and strengthening of authority of workers’ representative

Ensure the participation of contractors/subcontractors and their workers in the Industrial Safety and Health Committee

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

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

  • Broadening/guaranteeing of right to suspend work

Newly establish workers’ right to demand work suspension or corrective action

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”

Establish a new provision for criminal penalties in case of retaliation against a worker’s legitimate exercise of the right to suspend work

Reinforcement of Other Regulations and Inspections

Reinforcement of Technological and Human Resource Standards, Etc.

  • Introduction of smart safety equipment and AI-based safety technology

Review a phased plan to mandate protective devices, such as human body detection sensors, for equipment such as forklifts and conveyors

  • Increasing safety and health managers

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

  • Expansion of incentives for industrial accident prevention activities

Under the Act on Restriction on Special Cases Concerning Taxation, expand the scope of eligible safety facilities for Integrated Investment Tax Credit

Reinforcement of Regulations on Foreigners, Special-Type Workers, Etc.

  • Reinforcement of protection for foreign workers

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

Restrict the employment of foreign workers for one year in case of a foreign worker suffering disease or injury from a serious accident

Replace the unit of restriction on the employment of foreign workers in the construction industry from “workplace” to “business owner”

  • Reinforcement of protection for special-type workers

Expand the scope of occupations and regulations applicable to the OSHA

Implement health examinations for high-risk special-type workers, such as those engaged in night or parcel delivery work

Under the Last-Mile Logistics Industry Development Act, mandate the enrollment of delivery workers in the commercial vehicle insurance and safety training

  • Reinforcement of protection for elderly workers

Distribute task management guidelines by industries and occupations employing a large number of elderly workers

Expand safety and health training tailored to elderly workers

Information Sharing and Joint Inspection With Local Government and Private Sector

  • Information sharing and joint inspection amongst government, local governments and private sector

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

Local government: Inspect and supervise small-scale workplaces with fewer than 30 employees

Private sector: Strengthen regular patrols and technical guidance for micro-enterprises through private safety guardian agencies and private disaster prevention agencies

 

The Comprehensive Plan clarifies the government’s policy to proactively prevent serious accidents and impose severe responsibility. The government will draft detailed implementation plans with relevant ministries and push for the enactment/amendment of relevant laws within the year. In particular, economic, administrative and criminal penalties for legal violations have been greatly enhanced as a result of the implementation of a comprehensive set of robust sanctions and policies. These measures include (i) establishment of new administrative surcharges, (ii) extension of business suspensions, (iii) broadening of the right to suspend work, (iv) mandating of a safety and health disclosure system, (v) financial disincentives, (vi) upward revision or establishment of new sentencing guidelines, and (vii) expansion of penalties (particularly for violations related to risk assessments). Preventing, and responding to, serious accidents have gone beyond being merely a legal compliance risk, becoming a core management task directly linked to a company’s stability.

Furthermore, the government, pursuant to its policy to enforce immediate judicial measures without providing an opportunity for corrective action regarding violations of the OSHA during labor inspections, is currently conducting extensive labor inspections. Businesses are therefore strongly advised to evaluate their existing safety and health management systems, including workplace safety and health measures, in accordance with the OSHA, assess potential legal risks and devise remedial measures, thereby ensuring an agile response to evolving government policies.

 

[Korean Version]

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