If three or more workers die within a one-year period due to an employer’s violation of safety and health obligations, a penalty of up to 5 percent of the employer’s operating profit may be imposed. The draft amendment to the Occupational Safety and Health Act was approved by the Cabinet on the 20th. The amendment also strengthens the safety rights of workers on-site, including allowing subcontracted workers to directly request a work stoppage from the prime contractor.
In this news segment, we’ll summarize the penalty standards included in the amendment, changes to work stoppage authority, sanctions against repeat offenders, and the effective date.
On the morning of the 20th, the government deliberated and approved 22 bills for promulgation—including the amendment to the Occupational Safety and Health Act—and 15 draft presidential decrees at a Cabinet meeting presided over by President Lee Jae-myung.
The core of the amendment is the introduction of administrative fines. If an industrial accident resulting in the deaths of three or more workers occurs within a one-year period due to an employer’s violation of the safety and health measures mandated by law, a penalty of up to 5% of operating profit may be imposed. However, the penalty is not imposed solely because deaths occurred; it requires a violation of the employer’s legal obligations.
If there is no operating profit, if it is difficult to calculate, or if the administrative fine calculated based on operating profit is less than 3 billion won, the fine may be imposed up to 3 billion won in accordance with a presidential decree. The specific amount is determined by considering factors such as the size of the company, the nature of the violation, and the number of fatalities. The collected fines are allocated to the Industrial Accident Compensation Insurance Fund and used for industrial accident prevention programs.
Workers’ authority to halt work is also being expanded. Previously, workers could only stop work and evacuate when there was an imminent risk of an industrial accident; going forward, they will be able to halt work and evacuate even in situations where there is a concern of imminent risk.
The range of parties authorized to make such requests is also expanding. Workers, worker representatives, and honorary industrial safety inspectors will be able to request a work stoppage from the employer, and subcontracted workers will be able to make such requests directly to the prime contractor. The criteria for work stoppage orders issued by the Minister of Employment and Labor will also be expanded to include not only cases where a serious industrial accident has occurred, but also situations where a worker has fallen unconscious due to an accident or whose survival is uncertain.
Penalties for workplaces where serious industrial accidents recur will also be strengthened. If a workplace has received two or more business suspension orders within a three-year period due to accidents resulting in the deaths of two or more people at the same time caused by violations of safety and health measures, and is subsequently subject to another request for business suspension, the Minister of Employment and Labor may request the relevant administrative agency to revoke the business registration.
In addition, the legal basis has been established for the creation of the “Safe Workplace Committee,” in which labor, management, government, and experts will deliberate on industrial accident prevention policies, and a system will be introduced to award monetary rewards to individuals who report violations of the Industrial Safety and Health Act.
On the 1st, the National Assembly passed this amendment in a plenary session with 161 votes in favor, 52 against, and 6 abstentions out of 219 members present. This legislation codifies the key tasks outlined in the Comprehensive Labor Safety Plan announced by the government last September, with a focus on strengthening companies’ responsibility for preventing workplace accidents and workers’ rights to safety.
The effective dates vary by provision. Key provisions—such as the imposition of administrative fines and the expansion of the scope of work stoppages—will take effect six months after promulgation, while provisions regarding the establishment of Safe Workplace Committees and reward programs for reporting violations will take effect three months after promulgation.
The direction of this amendment can be interpreted in two ways. One is the broadening of sanctions from a focus on criminal penalties to include financial penalties and the revocation of business licenses; the other is the delegation of the authority to halt hazardous work to the front lines. In particular, the provision allowing subcontracted workers to directly request a work stoppage from the prime contractor is a change aimed at the weakest link in the prime-subcontractor structure.
The actual effectiveness is likely to depend on subordinate regulations and operational guidelines. The key issues remaining are how the presidential decree setting the level of administrative fines will be designed and whether an environment will be created in which work stoppage requests can actually be exercised on-site. Given that administrative fines are based on “breaches of duty,” companies will henceforth be required to demonstrate compliance with safety measures rather than simply the absence of accidents.
The Korea Economic Daily, “Fines of up to 5% of operating profit for companies with three or more annual work-related fatalities… Approved by the State Council,” 2026 — https://www.dnews.co.kr/uhtml/view.jsp?idxno=202610201417214590329
Cabinet Approves Proposed Amendment to the Occupational Safety and Health Act, October 20, 2026 (cited in the article)
National Assembly Plenary Session Approves Amendment to the Occupational Safety and Health Act, October 1, 2026 (cited in the article)
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