President Lee Jae-myung sharply criticized POSCO Engineering & Construction (POSCO E&C) for a series of fatal workplace accidents, signaling plans for strict economic penalties such as hefty fines and punitive damages against companies with recurring safety failures.
During a Cabinet meeting at the Presidential Office in Yongsan on the 29th, President Lee called the repeated accidents “tantamount to murder by implied intent,” underscoring the preventable nature of these tragedies.
“Repeated accidents at the same site show a willful tolerance of death,” Lee said, expressing shock that POSCO E&C has already recorded five worker fatalities this year alone. He also hinted at a possible site inspection in person.
Lee ordered the government to introduce punitive damages targeting companies with habitual workplace deaths, saying, “I hope this year marks the beginning of eradicating industrial fatalities.”
Acknowledging limits in criminal penalties, Lee emphasized, “To reduce accidents, companies need to face increased costs. Repeated incidents are nearly intentional. Imposing heavy fines and punitive damages will compel businesses to act.”
He also proposed financial sanctions, including restricting loans and investments to offending companies. “Loan restrictions can be implemented quickly, and such measures could significantly impact publicly traded firms,” he said.
The Ministry of Trade, Industry and Energy was directed to instill awareness among companies that “managing hazardous worksites poorly will result in higher costs.”
The Ministry of Employment and Labor swiftly responded, with Minister Kim Young-hoon stating, “POSCO E&C has undergone three focused safety inspections this year due to major accidents, yet another incident occurred. This points to a failure in safety management by headquarters and the CEO.”
POSCO E&C CEO Jung Hee-min issued a formal apology at a press conference held at company headquarters in Incheon’s Songdo district. He expressed deep condolences for the victims and took full responsibility.
Jung announced an immediate halt to all work at affected sites, a company-wide urgent safety audit, and pledged to resume operations only after confirming safety.
POSCO E&C suffered four major industrial accidents resulting in five worker deaths this year: a fall at an apartment site in Gimhae in January; a collapse at the Gwangmyeong Shinansan Line construction site in April; another fall at a residential complex site in Daegu the same month; and most recently, a tunnel boring machine accident on the Hamyang-Changnyeong highway.
