🔹Key Ruling

The Korean Supreme Court ruled that:

For the Serious Accidents Punishment Act (SAPA),

Employee numbers must be calculated by combining headquarters and all business sites if they operate as a single entity.


The Court upheld a 3-year prison sentence for a company CEO.



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Background

In March 2022, a worker died after an explosion inside industrial equipment at a plastic manufacturing plant in Seocheon.

The CEO was charged with:

Failing to establish safety and health policies

Failing to allocate and manage safety budgets

Failing to implement preventive measures




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Key Legal Issue

Whether the workplace met the 50-employee threshold required for the Serious Accidents Punishment Act.

The defense argued:

The specific factory where the accident occurred had fewer than 50 employees,

Therefore, the law should not apply.




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Lower Court Decisions

Trial Court (1st instance):

Found the CEO guilty.

Sentenced him to 1 year in prison, suspended for 2 years.

Considered:

Compensation paid to the victim’s family

Family’s request for leniency



Appellate Court:

Increased the sentence to 3 years in prison (no suspension).

Emphasized:

Workplace safety is a systemic responsibility, not just individual fault.

The CEO failed to fulfill legal safety obligations.

Victim family’s wishes do not override public interest in punishment.





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Supreme Court Decision

The Supreme Court dismissed the appeal and finalized the 3-year prison sentence.


Key Reasoning

A “business or workplace” under the law includes:

Economically and operationally integrated units.


In this case:

Headquarters and multiple factories had integrated HR and financial systems.


Therefore:

They must be treated as one entity, and

Employee numbers must be aggregated when applying the law.




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Legal Significance

Establishes a clear rule:

Companies cannot avoid SAPA liability by splitting operations into smaller units.


Expands accountability for:

Corporate executives and management-level decision-makers.


Reinforces that:

Workplace safety failures are structural and managerial, not isolated incidents.

Article: https://www.lawtimes.co.kr/news/articleView.html?idxno=217841