DR & AJU Legislation & Government Relations Consulting Center’s latest issue of its specialized legislative journal, the Policy & Business Report, is now available in digital format.
Five months after the implementation of the Serious Accidents Punishment Act, it is time to strengthen the effectiveness of the law and seek a paradigm shift by establishing industrial safety and health policies for accident prevention.
On June 28, 2022, the Legislative Strategy Center (represented by Co-head of the Center Dong Eon CHA and Min Jae PARK) of DR & AJU LLC (represented by Managing Partner Kyu Chul LEE) released the June 2022 issue of the specialized legislative journal, the Policy & Business (P&B) Report.
Mr. Dong Eon CHA, co-head of the Legislative Strategy Center, stated, “the Yoon Government and the ruling party are taking steps to amend the Serious Disaster Punishment Act (“SAPA”). They are approaching the issue in various angles by not only promoting the amendment of the enforcement ordinance, but also proposing a revised bill to reduce the penalties of the responsible managing officers who violate the law.” He further commented that “the Government announced on July 16 that they will revise the enforcement ordinance as early as July to clarify the obligations of responsible managing officers. The next day, the People Power Party submitted an amendment bill that reduced the penalties of responsible managing officers in the event of a serious accident despite having taken enough measures for securing safety and health at the business site.”
Ms. Min Jae PARK, co-head of the Legislative Strategy Center, added, “the business circles and the industrial circles are welcoming this amendment as they have been demanding the revision of the law on grounds that the stipulated obligation to secure safety and health is vague, and the penalties are excessive. On the other hand, labor groups are against the revision, claiming that such amendment is to grant remission to corporations.” She stated, “The People Power Party will collect opinions on the amendment within the party before deciding whether to adopt it as the party’s official opinion. However, political and business circles predict it is uncertain whether the revision will pass the National Assembly due to the fierce opposition from the Democratic Party and labor groups.
Mr. Seung Cheol LEE, a Senior Advisor at DR & AJU, pointed out, “It has already been five months since the SAPA implementation, but the law has continued to cause confusion at work sites. There are persistent concerns that the ambiguous legal regulations and the excessiveness of the imposable punishment might put a damper on business activities.” He added, “Following the enforcement of the law, interest in safety and health is increasing more than ever at work sites, and companies are showing positive changes, such as increasing safety and health human resources and budget. The Government must actualize the legislative purpose of the SAPA and further strengthen the effectiveness of the law and seek a paradigm shift by establishing industrial safety and health policies for accident prevention.”
As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. Based on a comprehensive evaluation of the legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from May 15, 2022 to June 14, 2022, the June 2022 issue of the P&B Report selects and analyzes legislation that significantly impacts corporate activities. Especially for major Acts, key quotes from legislators, members of the Standing Committee, and government officials are included.
Mr. Kyu Chul LEE, the Managing Partner of DR & AJU, said, “DR & AJU established the Serious Accidents Practice Group in early 2021 to help corporate executives better mitigate the potential legal risks posed by the new Serious Accidents Punishment Act (“SAPA”), which came into effect on January 27, 2022. Mr. Lee stressed, “Drawing on our experience and practical expertise, we will provide full legal support by preemptively conducting a thorough examination on the reinforced safety and health obligations and proposing effective countermeasures against various upcoming difficulties for businesses to prevent problems after the law’s implementation.”
*Please download the PDF file for further information. (Korean)
