D&A LLC successfully represented a research institute and its employees (“Clients”) in an investigation concerning alleged violations of the Serious Accidents Punishment Act (“SAPA”) and the Occupational Safety and Health Act (“OSHA”). The institute had commissioned a contractor to develop an armored vehicle. On September 26, 2023, during a test drive conducted by the contractor’s employees at Dogu beach in Nam-gu, Pohang-si, Gyeongsangbuk-do, the vehicle’s vane device was unexpectedly damaged, causing the vehicle to submerge and resulting in the deaths of the contractor’s employees.

On behalf of the Clients, we argued that (i) the coastal area and waters where the accident occurred did not constitute a workplace actually controlled, operated, or managed by the institute; (ii) under the terms of the service agreement, the institute bore no obligation to implement safety measures for the contractor’s employees; and (iii) the institute had fulfilled, in good faith, its duties to secure safety and health under the SAPA.

As a result, the Ministry of Employment and Labor decided not to refer the Clients for indictment for the alleged violations of the OSHA and SAPA.

This case provides importance guidance for the SAPA-related investigations and enforcement, as it clarifies the legal standards for determining “actual control, operation, and management” when assessing the liability of project owners under the SAPA and OSHA.