SMEs Under 50 Employees Now in the 'Era of Accountability'
From January 27, 2024, the Serious Accidents Punishment Act (SAPA) has been fully enforced for workplaces with 5 to 49 employees. Previously applied only to businesses with 50 or more workers, this law now imposes new safety and health obligations on approximately 830,000 small and medium-sized workplaces across Korea.
If even a single fatal accident occurs, business owners or management officers may face imprisonment of one year or more, or a fine of up to KRW 1 billion, while corporations may be fined up to KRW 5 billion. However, according to a survey by the Korea Federation of SMEs, approximately 80% of SMEs have inadequate safety and health management systems, demanding immediate action.
Why ISO 45001 Is Powerful for Legal Compliance
ISO 45001 (Occupational Health and Safety Management System) is the most efficient way to meet the '9 core elements of safety and health management systems' required by Article 4 of the SAPA Enforcement Decree.
Core Elements of SME Safety and Health Systems
The key components of the safety and health management system required by the SAPA Enforcement Decree are as follows.
1. Management Policy and Leadership
A safety and health policy signed directly by the management officer and annual targets must be established and announced to all employees. It is important to review these in regular meetings, not merely post them.
2. Risk Assessment Procedures
Hazards must be identified by task, process, and equipment, with regular (at least annually) and ad-hoc (upon process changes) assessments conducted. Assessment results must lead to corrective actions, with records retained for three years.
3. Emergency Response and Accident Investigation
Emergency response procedures must be established for scenarios such as fire, explosion, and poisoning, with at least one annual mock drill. In the event of an accident, root cause analysis (RCA) and recurrence prevention measures are mandatory.
4. Subcontractor and Outsourcing Safety Management
Responsibility extends to subcontractor safety at workplaces under substantive control (e.g., leased factories, outsourced work sites). Safety and health clauses must be included in subcontracting agreements, with supplier evaluation procedures in operation.
KITIM Safety and Health Consulting Package
KITIM offers a three-stage safety and health implementation program specifically designed for SMEs under 50 employees.
Additionally, we link clients with the KOSHA Consulting Support Program (up to KRW 2 million annually) and the Clean Workplace Establishment Program (up to KRW 30 million with 70% government subsidy) to minimize consulting costs.
The SAPA is a law that holds businesses accountable for outcomes. Building a system before an accident occurs is the only defense. KITIM's safety and health consultants will propose tailored response strategies suited to your company's size and industry. Apply for a free diagnosis today.