Fines Up to 5% of Profits for Companies with Multiple Worker Deaths

by Kim Bongcheol Posted : October 20, 2026, 13:52Updated : October 20, 2026, 13:52
Recent amendments to the industrial safety law will allow fines of up to 5% of a company's profits if three or more workers die from industrial accidents due to violations of safety and health obligations within a year.

The government approved these amendments during the 45th Cabinet meeting chaired by President Yoon Suk Yeol on October 20.

According to the amendments, the Minister of Employment and Labor can impose fines on employers whose violations of safety and health obligations under the industrial safety law result in the deaths of three or more workers within the past year, not exceeding 5% of their profits.

Collected fines will be allocated to industrial accident compensation insurance and prevention funds to support accident prevention initiatives. This regulation will take effect six months after the law is promulgated.

The scope and conditions for workers to exercise their stop-work rights will also be expanded. Workers, employee representatives, and honorary industrial safety supervisors can demand a halt to work if there is an imminent risk of industrial accidents. Subcontracted workers will also be able to directly request a stop to work from the primary contractor.

Workers can stop work and evacuate not only in cases of imminent risk but also when there are concerns about potential dangers. The obligations of employers and contractors to cease operations when a worker requests a stop-work order will also be strengthened.

If an employer fails to comply with corrective action orders from the Minister of Employment and Labor, and the imminent risk of industrial accidents persists, work cannot resume until the corrective measures are completed.

The amendments also establish grounds for requesting the cancellation or revocation of business registrations for employers with a history of repeated fatal accidents.

If an industrial accident results in the simultaneous deaths of two or more workers and the employer has received two or more business suspension orders in the past three years, the Minister of Employment and Labor can request the relevant administrative agency to cancel or revoke the business registration.

The regulations regarding fines, expanded stop-work rights, and requests for business registration cancellations will take effect six months after the law is promulgated.

Additionally, heatwaves and cold snaps will now be recognized as valid reasons for extending construction periods. If project owners or contractors face difficulties in progressing due to extreme weather, they can extend the construction timeline, effective immediately upon the law's promulgation.

Furthermore, a 'Safe Workplace Committee' will be established, involving labor representatives and industrial safety experts, and provisions for rewarding individuals who report violations of industrial safety laws will also be introduced. These two initiatives will take effect three months after the law is promulgated.

The amendments are part of a comprehensive labor safety plan announced by the government in September 2025 and were passed by the National Assembly on October 1.




* This article has been translated by AI.