As discussions on enacting the "Special Act on Construction Safety" to reduce industrial accidents at construction sites gain momentum, concerns are growing over excessive punitive fines and the side effects of overlapping regulations. At a public hearing on the Special Act on Construction Safety held by the National Assembly's Land, Infrastructure and Transport Committee on Tuesday, the Construction Association of Korea said, "While we agree with the law's intent to extend safety responsibility from the current focus on construction contractors to include project owners, designers, and supervisors, excessive punishment that ignores reality could lead to the industry's collapse."
The core of the Special Act on Construction Safety is to impose fines of up to 3 percent of annual revenue on companies responsible for fatal accidents, or to order business suspensions of up to one year or prison sentences of up to seven years. Given that 47 percent of domestic industrial accident deaths last year were concentrated in the construction industry, the importance of safety cannot be taken lightly. However, critics point out that creating a separate law for "triple punishment" while the current Serious Accidents Punishment Act and Occupational Safety and Health Act are already in effect constitutes excessive legislation.
Moreover, the fine calculation standard of "3 percent of revenue" is far removed from the industry's reality. The average operating profit margin of Korea's top 10 construction companies last year was only 3.15 percent, meaning that fines of 3 percent of revenue could drive even healthy large corporations to bankruptcy. Furthermore, as many as 1,088 domestic construction companies closed in the first quarter of this year alone due to rising raw material costs and labor expenses. If a massive fine system is introduced under these circumstances, no company would be able to guarantee its survival.
The government has announced plans to strengthen comprehensive inspections of high-risk workplaces, but the limitations of punishment-focused policies have already been proven by data. Despite the government's declaration of "war on industrial accidents" and calls for stronger penalties, the number of workers who died from industrial accidents last year increased from the previous year to 605, demonstrating this point. Imposing fines that companies cannot bear and adding overlapping punishments could actually obstruct fundamental prevention through on-site safety investment. We must abandon the notion that "punishing companies" alone can solve all problems. Even if it takes time, only the straightforward approach can bring real change. We must not ignore the fact that industrial safety is achieved through investment in systems and the establishment of a safety culture, not through fear of punishment.
