A 'Construction Safety Special Law' has been proposed in the National Assembly that would impose a penalty surcharge of up to 3% of a construction company's revenue or a maximum one-year suspension of business operations in the event of a fatal accident. The construction industry is responding that this is an 'excessive sanction.'
According to the National Assembly on the 3rd, 11 members of the Democratic Party of Korea, including Representative Moon Jin-seok, recently jointly proposed the Construction Safety Special Law. The main content of this bill is to allow the imposition of a penalty surcharge of up to 3% of revenue or a maximum one-year business suspension on construction contractors, engineering contractors, and architects in the case of a fatal accident resulting from negligence in safety management.
If a participant in a construction project, such as a client, designer, constructor, or supervisor, violates safety management obligations and causes a fatal accident, they could face criminal penalties of up to seven years in prison or a fine of up to 100 million won.
The construction industry is expressing concerns following the proposal of this bill. The Construction Association of Korea said, 'Imposing a penalty surcharge of up to 3% of revenue could determine the survival of corporations,' adding, 'With various regulations already applied, such as the Serious Accident Punishment Law, Industrial Safety and Health Act, and Construction Technology Promotion Act, additional regulations could increase concerns about overlapping regulations.'