The government has announced strong measures to prevent serious accidents in the construction industry, but there are projections that simply strengthening penalties may not dramatically reduce incidents. It is pointed out that unless chronic issues at construction sites, such as illegal subcontracting and the lack of skilled workers among inexperienced and foreign laborers, are resolved, these measures will merely be a "stopgap measure."
According to the government and the construction industry on the 11th, the Ministry of Land, Infrastructure and Transport is reviewing sanctions against POSCO E&C, where consecutive fatal accidents have occurred, in collaboration with relevant ministries, including the Ministry of Employment and Labor. This action follows President Lee Jae-myung's directive to review possible legal measures, such as suspending construction licenses and banning public tenders for POSCO E&C after fatalities occurred due to construction accidents.
◇ Construction accidents 'one strike and you're out' … even one death can lead to 'business suspension'
Due to a lack of legal grounds for punishment under existing laws, the government and the National Assembly are also considering legislation to strengthen penalties. The ruling party is promoting the enactment of the Special Act on Construction Safety (Construction Safety Act).
The Construction Safety Act reflects the characteristics of the construction industry, which operates on a subcontracting structure, assigning safety management responsibilities and obligations based on roles that include clients of construction projects, contractors, subcontractors, workers, and local governments. Construction firms found responsible for fatal accidents can face up to one year of business suspension or a penalty surcharge equal to 3% of their revenues from related industries or sectors. There is also a provision for criminal penalties of up to seven years in prison or fines of up to 100 million won for all responsible parties who violate safety management obligations and cause fatalities.
The government is also reviewing a plan to amend the Industrial Safety and Health Act, allowing for business suspensions requests even if only one fatality occurs in construction accidents. Under current law, the government can only request local governments to suspend the operations of construction firms involved in accidents if more than two fatalities occur at a single business site. Presidential spokesperson Kang Yoo-jung recently noted in a briefing, "We examined whether amendments to the Industrial Safety and Health Act are necessary," and added, "Currently, the law allows for business suspension only if there are two or more fatalities per business site. Discussing where we found legal gaps and what needs to be supplemented is also ongoing."
◇ The construction industry says 'structural change is needed to reduce accidents'
In line with the government's strengthening of sanctions, the construction industry is enhancing safety management. However, it is argued that due to the current structure of the construction industry, fully preventing accidents is difficult. Practices focused on profits, such as shortened construction periods and issues related to illegal subcontracting, combined with limited safety expenses and a lack of skilled workers at construction sites, are entrenched problems that make it hard to significantly reduce accidents.
Construction companies sometimes submit low bids or propose unreasonable reductions in construction periods while securing contracts. In such cases, if the construction is pushed too hard, the likelihood of safety accidents increases.
The ongoing issue of illegal subcontracting also increases the potential for accidents at construction sites. If construction firms engage in illegal subcontracting, quality and safety management issues arise. In some cases, safety management costs are shifted to subcontractors, leading to a structure where safety management costs are reflected in construction costs, which consumers ultimately bear. When sales prices are restricted, construction firms may reduce safety management costs to cut expenses.
There are also issues related to manpower. The construction sites, which were previously dominated by Korean workers, now include many older new workers and foreigners. As a result, there are vulnerabilities to safety accidents due to a lack of experience and communication difficulties. An analysis conducted by the Ministry of Land, Infrastructure and Transport in February regarding fatalities from falls at construction sites revealed that the mortality rate among those entering construction sites after retirement, especially those in their 60s, is high. The risk of death for foreigners was 1.264, compared to 0.956 for Koreans.
There are concerns that if the structural problems of the construction industry are not addressed and if the focus remains solely on punishments to reduce construction accidents, the effectiveness will diminish. Construction companies will only "shelter from the downpour" by halting or scaling back operations, so the root causes of accidents will remain unresolved. If construction companies resume operations later, accidents are likely to recur.
Yoo Seon-jong, a professor in the Department of Real Estate at Konkuk University, remarked, "Historically, the government has emphasized results regarding safety and merely stated that there would be a one-strike-and-you're-out policy if accidents occurred." He added, "Accidents are structurally inevitable, but no solutions or alternatives have been proposed to prevent them." Professor Yoo continued, "Even if safety is emphasized and a company takes utmost care, accidents can still happen; there needs to be a plan to address this structurally."