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Key Features of the Enforcement Decree of the Severe Accidents Punishment Act

2021.12.06

The Enforcement Decree of the Severe Accidents Punishment Act (the “Enforcement Decree”) was promulgated on October 5, 2021.  The Severe Accidents Punishment Act (the “Act”) imposes health and safety related obligations on business owners and management (persons responsible for the management of a business) and punishment for breaching such obligations if severe industrial or civil accidents result.  The Act and its Enforcement Decree will become effective on January 27, 2022.  The key features of the Enforcement Decree are as follows: 
 
 
A.　Scope of Occupational Diseases (See Article 2 and Addendum 1) 
 
A person with an “occupational disease” is defined as being diagnosed with: (i) acute poisoning such as central nervous system damage caused by exposure to vinyl chloride, mercury, chromium, benzene, toluene and cadmium; (ii) bloodborne disease; (iii) leptospirosis; (iv) legionellosis; (v) oxygen deficiency; and (vi) heat stroke. 
 
 
B.　Scope of Public Facilities (See Article 3, and Addenda 2 and 3) 
 
Specified types of public facilities are required to establish and implement a health and safety management system, such as: (i) underground shopping malls with a total floor area of at least 2,000 m²; (ii) breakwaters with an extension of at least 500 m; (iii) multi-purpose business premises with a total floor area of at least 1,000 m²; and (iv) gas stations with a business area of at least 2,000 m². 
 
 
C.　Health and Safety Management System for Prevention of Severe Industrial Accidents

(See Article 4)

The business owner/management must set goals and management policies regarding the health and safety of the business (or place of business) that they effectively control, operate, or manage.  In addition, businesses (or places of business) with at least three health and safety experts and at least 500 full-time workers should: (i) have in place a department which is solely responsible for overseeing and managing health and safety issues; and (ii) allocate and execute budgets for health and safety personnel, facilities, and equipment. 
 
 
D.　Administrative Measures Required under Health and Safety Laws and Regulations for

Prevention of Severe Industrial Accidents (See Article 5)

The phrase “Health and Safety Laws and Regulations for Prevention of Severe Industrial Accidents” refers to laws and regulations which are: (i) applicable to businesses (or places of business); and (ii) related to the health and safety of workers. 
 
No less than twice a year, the business owner/management should inspect whether the obligations under Health and Safety Laws and Regulations for Prevention of Severe Industrial Accidents have been complied with in the business (or place of business) that they effectively control, operate, or manage.  In order to fulfill the obligations, the business owner/management must have manpower and allocate and execute additional budgets. 
 
 
E.　Health and Safety Training (See Articles 6 and 7, and Addendum 4) 
 
Upon the occurrence of a severe industrial accident, the business owner/management must request the Korea Occupational Health and Safety Agency (the “KOHSA”) or a private health and safety training institute for a training of its management personnel on health and safety and complete a total of 20 hours of such training.  Failure to complete required training is subject to a fine of KRW 10 million for the first violation, KRW 30 million for the second recurrence and KRW 50 million for the third recurrence. 
 
 
F.　Health and Safety Management System for Raw Materials and Products

(See Article 8 and Addendum 5)

The business owner/management must satisfy the manpower requirements pursuant to Health and Safety Laws and Regulations for Raw Materials and Products in the business (or place of business) that they effectively control, operate, or manage.  The business owner/management must confirm whether the proper measures are taken to prevent severe civil accidents no less than twice a year.  In addition, the business owner/management must periodically inspect raw materials or products which may cause harmful or risk factors to human life or body, such as toxic gases, and report them upon identification. 
 
 
G.　Administrative Measures Required under Health and Safety Laws and Regulations for

Raw Materials and Products (See Article 9)

The phrase “Health and Safety Laws and Regulations for Raw Materials and Products” refers to laws and regulations which are: (i) applicable to raw materials or products being produced, manufactured, sold or distributed in a business (or place of business); and (ii) related to the prevention and safe handling of raw materials and products which may cause harmful or risk factors to human life or body. 
 
No less than twice a year, the business owner/management should inspect whether the obligations under Health and Safety Laws and Regulations for Raw Materials and Products have been complied with in the business (or place of business) that they effectively control, operate, or manage.  In order to fulfill the obligations, the business owner/management must have manpower and allocate and execute additional budgets. 
 
 
H.　Health and Safety Management System for Public Facilities and Public Transportation

(See Article 10)

The business owner/management should have the manpower necessary to perform safety management tasks pursuant to Health and Safety Laws and Regulations for Public Facilities and Public Transportation that they effectively control, operate, or manage.  The business owner/management must check no less than twice a year whether the preventive measures are taken. 
 
 
I.　 Administrative Measures Required under Health and Safety Laws and Regulations for

Public Facilities and Public Transportation (See Article 11)

The phrase “Health and Safety Laws and Regulations for Public Facilities and Public Transportation” refers to laws and regulations which are: (i) applicable to public facilities and public transportation; and (ii) related to the protection of the health and safety of users and other persons. 
 
The business owner/management should inspect no less than once a year whether their obligations under Health and Safety Laws and Regulations for Public Facilities and Public Transportation have been fulfilled by the public facilities and public transportation that they effectively control, operate, or manage.  In order to fulfill the obligations, the business owner/management must have manpower and allocate and execute additional budgets. 
 
 
J.　Announcement of Occurrence of Severe Industrial Accidents (See Article 12) 
 
A place of business which has received a notice of punishment after a severe industrial accident occurred due to a breach of its obligation to secure health and safety must announce the occurrence of such accident. 
 
The details of the announcement should include: (i) the name of the place of business; (ii) the time and place of the accident; (iii) the number of people who have suffered from the accident; (iv) the details and causes of the accident; and (v) whether the accident occurred within the last five years. 
 
The Minister of Employment and Labor allows the business owner/management at least 30 days to submit explanations or statements about the accident. 
 
The announcement should be made in an official publication, or on the homepages of the Ministry of Employment and Labor or the KOHSA.  Information about the accident should be kept available for one year.

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