Land ministry officials conduct an on-site inspection at a collapsed apartment building in Gwangju, Feb. 9. Korea Times file

By Lee Kyung-min

Concerns are growing over the government's recent move to revoke a builder's construction license for on-site accidents as it adversely affects the entire industry, according to businesses and economists, Tuesday. They said that policymakers should make more efforts to help companies prevent industrial accidents, rather than simply punish violators of the industrial accident law after the fact.

Firms should never be easily excused for on-site accidents, they add, but that policy guidance should be about whether and how well safety protocols are established and continually followed, not merely about criminally punishing company heads.

The collective sense of unease has been amplified by the criminal punishment of CEOs for critical industrial accidents that took effect in January. A minimum prison term of one year, or a fine of up to 1 billion won ($843,000), if they are found liable for any fatal industrial accident that occurs under their leadership.

Like a 'death penalty'

"A builder losing its license is like a death penalty," a construction industry official said on the condition of anonymity. "It essentially forces a firm out of the market with its years-long track record and brand power left useless. The objective is to prevent deaths and injuries, not to put builders out of business. I seriously doubt how many builders would survive if this revision goes through," the official said.

Seoul National University economist Lee In-ho echoed the view.

Outright revoking of a builder's license and a minimum prison term of one year is the way to go, according to Lee, if the objective is to instill fear in construction company CEOs and curtail business activities.

But harsh penalties are far from helpful, if the ultimate goal is to strengthen on-site safety and establish a corporate culture that recognizes the importance of workers' safety, propped up by their employers' efforts to create a better working environment.

"At a glance, threatening ― for lack of a better word ― a prison term and administrative orders to wipe their business records out, essentially, has a dramatic effect. But whether that declaration induces lasting change, as desired by the government, is a whole different story."

The comment came on the heels of the announcement of the land ministry, Monday, regarding strengthened construction accident prevention measures, including the immediate cancellation of the license of any firm that is found responsible for the deaths of at least five workers or three non-workers nearby.

The harsh measure followed the partial collapse of an apartment building under construction in Gwangju in January. Six workers died and one was injured.

Meanwhile, the Korea Enterprises Federation submitted a recommendation report to the transition team of President-elect Yoon, Sunday, on ways to ease the rules surrounding the punishment of CEOs for fatal industrial accidents. Among the enterprise federation's recommendations were tax revisions, deregulation, increasing the flexibility of the labor market and an overhaul of the social safety net system.