The government will conduct comprehensive inspections of 190,000 factories and warehouses identified as having potential fire hazards by the end of next year. This decision follows a major fire at a Coupang logistics center in Incheon earlier this month and a tragic incident at an auto parts factory in Daejeon in March, prompting a thorough review of structural vulnerabilities and safety management practices.
On July 31, Deputy Prime Minister and Minister of Economy and Finance Ku Yun-cheol chaired a meeting of the Emergency Economic Headquarters, where a joint plan titled 'Measures to Strengthen Fire Safety in Factories' was announced.
The inspections will focus on factories and warehouses with a total floor area of over 500 square meters. Facilities storing hazardous materials and those with a risk of industrial accidents will also be included, even if they are smaller than this threshold.
Based on the results of a pilot inspection conducted from June 17 to June 22 on 112 facilities, the government plans to finalize the details of the comprehensive inspections next month.
The first phase of inspections will begin in September and run through December, targeting approximately 40,000 high-risk factories and warehouses that handle hazardous materials. In the first half of next year, another 40,000 facilities at risk of industrial accidents will be inspected, followed by the remaining 110,000+ facilities in the second half of the year.
Inspections will assess fire vulnerabilities and legal compliance across various sectors, including construction, fire safety, industrial safety, electrical safety, and chemical safety. Any violations, such as illegal expansions or inadequate fire safety measures, will require immediate remediation, and the findings will be compiled into a database.
A representative from the Ministry of Land, Infrastructure and Transport stated, “We have determined how many inspections can be conducted daily and how often we can carry them out weekly based on the pilot inspections of 112 facilities. With the involvement of relevant agencies, local governments, private experts, and youth workers, we will ensure thorough execution by the end of next year.”
Currently, fire safety inspections by the fire authorities are conducted on only 5% to 10% of the approximately 2.6 million facilities each year. This year, the inspection rate is about 7%, but the new measures will ensure comprehensive inspections of factories and warehouses based on their risk levels.
Fire safety standards will also be strengthened. The exterior material standards for hazardous facilities will be raised from non-combustible to fire-resistant, and the installation of intelligent fire detectors will be mandatory. Factories with a total floor area of over 5,000 square meters will be required to install sprinklers on all floors.
However, the enhanced fire resistance and safety standards will not be retroactively applied to existing factories and warehouses; they will only apply to new facilities receiving permits. Existing large facilities, like the Coupang logistics center, will be encouraged to improve their infrastructure through comprehensive inspections and financial support.
Starting in 2027 and continuing through 2031, the government will introduce a 200 billion won subsidy program to support the purchase of fire and explosion prevention equipment and the installation and replacement of fire safety facilities. During the same period, a 12.5 trillion won 'Fire Zero Safety Investment Loan Program' will be available for small and medium-sized enterprises.
Small businesses will receive long-term, low-interest loans totaling 250 billion won. For medium-sized enterprises borrowing safety investment funds from commercial banks, the government will subsidize interest rates by 2.0 percentage points on loans up to 2 billion won.
A total of 30 trillion won in policy financing will be provided, including 15 trillion won from the Industrial Bank, 10 trillion won from the Korea Development Bank, and 5 trillion won from the Credit Guarantee Fund. Investments in fire prevention equipment will receive preferential interest rates and guarantee fees, and factories that install new fire safety devices will be eligible for premium refunds on their insurance contracts.
Advanced safety technologies utilizing AI and robotics will be designated as new growth and core technologies, expanding investment tax credits. For safety equipment in small businesses, the standard useful life will be reduced by 50% for accelerated depreciation, and large companies supporting the improvement of fire prevention facilities for their partners will receive a 10% corporate tax deduction on their contributions.
The reward for excellent reports to the Safety Reporting Center will increase from the current 200,000 to 1 million won, with a maximum of 2 million won. Plans are also underway to provide up to 30% of fines and penalties collected from internal whistleblowers as rewards, with general citizens eligible for rewards of up to 500 million won.
* This article has been translated by AI.
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