SAPA, now applicable to all workplaces with five or more employees… All eyes on the possibility of additional postponement.

On January 27, the SAPA became applicable to businesses with five or more but less than 50 full-time employees after rocky negotiations between the ruling and the opposition party failed to put the two-year postponement proposal of the SAPA on the National Assembly’s plenary session’s agenda. 

However, there was a positive change in the Democratic Party of Korea’s stance on the proposal by the People Power Party, which proposes to postpone the SAPA for workplaces with less than 25-30 workers for one year. This has heightened interest in whether this proposal will be approved in the next plenary session on February 1.

The SAPA is an act that punishes business owners or responsible managing officers who fail to secure health and security at the workplace when there is a serious accident, including death. It imposes either imprisonment of at least one year or a maximum fine of KRW 1 billion. Although the SAPA was promulgated in January 2021 and implemented in the following year, the application of the act had been postponed for workplaces with less than 50 employees for two years. On January 27, 2024, the act became applicable to all workplaces with five or more employees.

The floor leader of the People Power Party attempted last-minute private negotiations during the plenary session on January 25, which was two days before the expanded application of the SAPA, but was unsuccessful.  

As the ruling party and the opposition party failed to meet in the middle, more than 837,000 businesses and 8,000,000 workers became subject to the SAPA. If it is confirmed that a responsible managing officer has neglected their duty to secure health and safety when a serious accident occurs, the officer is subject to imprisonment of at least one year or a maximum fine of KRW 1 billion.
 
However, some members of the Democratic Party of Korea have expressed approval of the proposal for the SAPA postponement, which may signal a turn of tides. During the general assembly that was held before the plenary session on January 25, the party members of the Democratic Party of Korea seemed to have conflicting opinions about the People Power Party’s one-year postponement proposal for the SAPA.

However, with both parties in a deadlock over the establishment of the Occupational Safety and Health Administrative Office, there is much speculation over whether there will be any developments before February 1. 

As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. The January 2024 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from December 15, 2023, to January 14, 2024, and selected and analyzed legislation with a significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.

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