As legislation aimed at strengthening economic penalties for industrial accidents advances in the National Assembly, discussions surrounding labor exceptions for mega special zones aimed at easing regulations for advanced industries are facing significant challenges. Analysts suggest that the combination of increased corporate safety responsibilities and rigid working hour regulations is intensifying the operational burdens on businesses.
On October 20, political and business circles reported that a proposed amendment to the Industrial Safety and Health Act, which would impose fines of up to 5% of operating profits on companies with three or more industrial accident fatalities annually, passed the Cabinet meeting.
The business community expressed concerns immediately following the bill's passage in the National Assembly. The Korea Employers Federation stated, "The criteria are excessive and unrealistic, not considering the business environment. Large enterprises could face astronomical fines, while small and medium-sized enterprises may be severely impacted to the point of jeopardizing their existence."
They further explained, "In light of the recent years of legislative efforts to strengthen penalties for business owners through comprehensive amendments to the Industrial Safety and Health Act and the establishment of the Serious Accident Punishment Act, introducing a new fine system that overlaps with existing penalties is excessive and unlikely to yield effective accident prevention results."
Debate continues over labor exceptions in mega special zones. The Democratic Party is pushing for special legislation to support investment and growth in national strategic projects like semiconductor clusters, but opinions within the party are divided regarding the exception clauses.
On the same day, Choi Gi-sang, the ruling party's representative on the National Assembly's Climate, Energy, Environment, and Labor Committee, proposed a super-large special zone law excluding labor exceptions. This proposal omits key labor exception provisions, including exemptions from the 52-hour workweek, expansion of flexible working hours, and extensions of fixed-term employment periods.
Conversely, Park Sang-hyuk, the ruling party's representative on the National Assembly's Political Affairs Committee, introduced a super-large special zone law that includes labor exceptions such as exemptions from the 52-hour workweek and extensions of fixed-term employment periods. According to this bill, workers classified in the top 3% of income among managers, experts, and research and development personnel within the special zone would not be subject to the 52-hour workweek limit and would not receive statutory overtime pay for night or holiday work.
The Democratic Party plans to merge the proposals from Choi Gi-sang and Park Sang-hyuk for a final review, but tensions are expected as labor and business groups clash. Labor representatives are demanding the withdrawal of the bill, opposing the inclusion of labor exceptions, while business representatives argue for the swift passage of a bill that includes these exceptions.
The Economic 6 Organizations, including the Korea Employers Federation, the Korea Chamber of Commerce and Industry, the Korea Economic Association, the Korea International Trade Association, the Korea Federation of Small and Medium Businesses, and the Korea Federation of Medium Enterprises, stated, "The application of this system targets the core workforce that is the source of corporate competitiveness," and pledged to establish a fair compensation system through discussions between workers and employers regarding wage structure reforms. They emphasized that labor exceptions related to working hours for research and development tasks, the expansion of the settlement period for flexible working hours, and the extension of fixed-term employment periods are essential.
Labor groups are strongly demanding the exclusion of labor exceptions. The Korean Confederation of Trade Unions issued a statement urging the immediate withdrawal of the super-large special zone law proposal that includes labor exceptions and called for sincere social dialogue that does not predicate the introduction of labor exceptions. The Korean Trade Union Confederation also warned that if the government and ruling party do not withdraw the bill, they will mobilize extensive solidarity and strong protests to block it.
* This article has been translated by AI.
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