POSCO E&C is in crisis following a series of worker fatalities. The president has even mentioned 'license cancellation,' indicating that the company may not be able to escape responsibility for the accidents. In the construction industry, there are evaluations stating that 'POSCO E&C has been singled out as a model example to ring the alarm on construction fatalities.'
The government is showing a strong stance on strict punishment for disaster accidents, putting construction companies facing sanctions on high alert. This is because companies that have experienced multiple fatalities similar to those at POSCO E&C are likely to face severe penalties, including business suspension.
According to the government and the construction industry on the 8th, four people have died in accidents at POSCO E&C's construction sites this year. President Lee Jae-myung strongly condemned the company, urging for legal measures such as suspension of construction licenses and bans on public bidding. Consequently, related ministries such as the Ministry of Land, Infrastructure and Transport and the Ministry of Employment and Labor have started inspections of POSCO E&C's construction sites and legal reviews to determine the level of sanctions.
The construction industry is on high alert due to the new government's strong stance on severe punishments for major disasters. In particular, there are significant concerns among construction companies facing sanctions after experiencing large-scale fatalities this year. Even though POSCO E&C is not the company with the highest number of fatalities, there are indications that it may face the maximum level of sanctions.
Some interpret that the government is unfairly targeting POSCO E&C with a 'political intent,' but it is expected that no exceptions will be made for other construction companies where major disasters have occurred.
The companies with the highest number of worker fatalities this year are Samjeong Corporation and Hyundai Engineering. These companies have seen six workers die just this year. Six fatalities occurred due to a fire accident at the 'Busan Banyan Tree' construction site, which Samjeong Corporation was in charge of. Hyundai Engineering has reported one fatality each at the Hillstate Pyeongtaek Hyang, and the Cheonan Asan The First office building construction sites, in addition to four fatalities and six injuries in the collapse of the Seoul-Anseong Expressway.
In particular, Hyundai Engineering is awaiting the announcement of results from the accident investigation committee (AIC) that aims to identify the causes of the Seoul-Anseong Expressway collapse. The AIC's results were supposed to be announced last month but were delayed. The Ministry of Land, Infrastructure and Transport is expected to decide on the level of sanctions against Hyundai Engineering following the AIC's announcement.
According to the current Basic Construction Industry Act, licenses can be revoked if construction projects are poorly executed intentionally or through negligence, causing significant damage to critical structural parts and endangering public safety. Additionally, business suspension can be imposed at sites where fatalities occurred.
The government plans to decide on the level of administrative actions based on the AIC's results. A government official stated, 'We will look into the applicability of the Construction Industry Act based on the AIC's results,' adding, 'The AIC's outcome will be fair, and the application of the Construction Industry Act will not be limited to any specific company.'