D&A LLC successfully represented a project management company in a criminal investigation concerning an alleged violation of the Serious Accidents Prevention Act (SAPA) arising from a fatal accident that occurred on February 23, 2022, during the demolition of a chimney at a university dormitory construction site in Jeju. The accident resulted in the death of a worker employed by a subcontractor of joint constructors.

The central issue was whether the SAPA applied to the responsible managing officer of K Company (“Client”), a project management company that was one of three constructors jointly awarded the construction project (with the Client holding a 50% stake, S Corporation 30%, and J Corporation 20%). Representing the Client, we argued that the Client was not responsible for the actual control, operation, or management of the accident site, as another constructor had independently undertaken the demolition work. Accepting our arguments, the investigative authority decided not to indict the Client for the alleged SAPA violation.

As one of the earliest cases involving the SAPA, this case carries significant legal implications by affirming the principle of strict interpretation to the proviso of Article 5 of the SAPA, which provides that liability applies only when a business owner, corporation, or institution is  “actually responsible for controlling, operating, and managing the relevant facility, equipment, place, etc.” The case is also noteworthy for clarifying the scope of liability of project management companies in joint construction projects.