Korean Criminal Culpability under the Serious Accidents Punishment Act of Korea

The Serious Accidents Punishment Act of Korea was recently amended to, among other things, expand application to all businesses, increase punishment, and increase the scope of acts and omissions that may be punished under the Act. Violation of the act may lead to jail sentences for company executives and employees. We advise all companies engaged in activities that have the potentiality of serious injuries to employees, contractors, or third parties to perform a comprehensive safety and compliance audit with the assistance of a proactive law firm.

As of December 2024, around 30 cases have been ruled on at courts of first instances. In some cases, reactionary attitudes caused by pressure from the media and politicians led to prosecutions. We advise all companies in businesses in construction, chemicals, manufacturing, and other businesses in which injuries are far from rare to understand Korea’s OSHA Law and this Act and consult with your attorneys on how to mitigate criminal and civil liability.

Additionally, it is advisable to read the following post on Korea’s Occupational Safety and Health Law based on a recent Korean Supreme Court holding. Criminal Liability under the Occupational Safety and Health Act of Korea for Actions and Omissions of Subcontracts and Project Owners.

Criminal Culpability in Korea for Accidents
under Korea’s OSHA and
Serious Accidents Punishment Act

Serious Accidents Punishment Act’s Major Updates for 2024

1. The Serious Accidents Punishment Act of Korea is applied to businesses or workplaces with less than 50 employees and all construction projects even those worth less than KRW 5 billion.

From January 27, 2024, the Serious Accidents Punishment Act is applied to businesses and workplaces with 5 or more regular workers (reduced from 50 workers) and on construction projects of any size. SMEs petitioned to grant a grace period to SMEs, but the National Assembly of Korea has taken no measures to grant a grace period to SMEs.

2. First Arrest under the Serious Accidents Punishment Act of Korea

In August of 2024, the first arrest and detention under Korea’s Serious Accidents Punishment Act occurred. The Aricell CEO (battery manufacturer) and his son were arrested after the death of 23 workers in a battery factory fire in Hwaseong Korea.

We expect additional prosecutions under this Act after this recent utilization of the Act.

3. First Supreme Court Ruling on Serious Accidents Punishment Act of Korea

On November 14, 2024, the Supreme Court of Korea overturned the original not guilty verdict against the president of a Port and remanded the case for retrial with a guilty verdict. The case, also, involved liability under Korea’s Amended OSHA Law.

The first trial court adjudged the president of Port as the contractor and granted the detention of the president, but the second trial found the president not guilty, saying he was the construction project orderer and not a contractor and, thus, not guilty. The Supreme Court of Korea reversed the holding. The criteria presented were: i) whether the subcontractor had actual control and management authority over hazardous and dangerous factors related to the prevention of industrial accidents that could occur during the construction process implemented at its workplace; ii) the degree of actual influence the subcontractor exercised over the construction project; and iii) the subcontractor’s expertise and construction capabilities regarding the project. The court ruled that this should be judged from a normative perspective (2023do14674 ) and held the president guilty.

We shall update the reader on further developments.

Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only two non-Korean lawyers as a Top Attorney by AsiaLaw, and IPG Legal is consistently ranked Top Dispute Resolution Law Firm for our litigation services.

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