Foreign Worker Falls 15.7 Meters to Death... Prime Contractor CEO Indicted and Detained After Claiming "Not Responsible" for Subcontractor

Shifting Safety Responsibility to Subcontractors
Five Prime and Subcontractor Officials to Stand Trial
First Detention and Indictment in Seoul Under the Serious Accidents Punishment Act
Prosecution: "A Major Human-Caused Disaster Outsourced for Risk"

In relation to an accident in which a foreign worker fell to his death from a height of 15.7 meters while dismantling a mechanical parking lift, the CEO of the prime contractor has been indicted and detained on charges of violating the Serious Accidents Punishment Act. This is the first case in Seoul where the CEO of a prime contractor has been indicted and detained for violating the Serious Accidents Punishment Act.

On the 9th, in the special investigation headquarters for the prosecution's emergency martial law, former Special Warfare Commander Joongeun Kwak is reportedly being summoned and under investigation, while the Taegukgi flag and prosecution flag are fluttering in the wind in front of the Seoul Central District Prosecutors' Office building. Photo by Huh Younghan

On August 18, the Public Investigation Division 3 of the Seoul Central District Prosecutors' Office (Chief Prosecutor Kim Jeongok) indicted CEO A of prime contractor A Company, a mechanical parking equipment firm, on charges of industrial accident death under the Serious Accidents Punishment Act and violation of the Framework Act on the Construction Industry. Division head B of A Company was also indicted and detained on charges of violating the Occupational Safety and Health Act and involuntary manslaughter due to professional negligence.

The accident took place on March 10, 2024, at the construction site for the mechanical parking facility contracted to A Company. During dismantling work, a foreign worker from a subcontractor fell 15.7 meters and died.

The installation project for the mechanical parking facility is a type of specialized construction which is legally prohibited from being subcontracted. However, it was found that A Company subcontracted the entire project to Company B without having its own construction workforce. Company B then re-subcontracted the dismantling work to Company C. The prosecution determined that, in an effort to save costs, A Company created an illegal subcontracting structure and assigned hazardous work to a company lacking sufficient safety management capacity.

In particular, during the investigation, A Company claimed that its relationship with Company B was a “joint contract” rather than a prime-subcontractor relationship, thereby denying its safety management responsibilities as the main contractor. The prosecution, guiding the investigation conducted by special judicial police officers of the Ministry of Labor, confirmed the contractual relationship through search and seizure procedures and concluded that A Company was the contractor responsible for safety management measures to prevent industrial accidents involving subcontractor workers.

The prosecution found that A Company entered into a joint contract in form with Company B to conceal the subcontracting relationship, subsequently using this as grounds for not fulfilling its obligations to ensure safety and health for subcontracted workers. Citing the safety management void brought about by the illegal subcontracting as the root cause of the accident, the prosecution also charged CEO A and the representative of the subcontractor with violation of the Framework Act on the Construction Industry.

The CEO of the subcontractor, the head of the installation division, and the CEO of the re-subcontracted company were indicted without detention on charges including violations of the Serious Accidents Punishment Act and the Occupational Safety and Health Act. Both the prime contractor’s and the subcontractor’s corporate entities have also been referred for trial without detention.

The prosecution stated, “This case sends a warning to the industry engaged in outsourcing risks by operating specialized construction projects through illegal subcontracting structures,” and added, “We will collaborate with the Ministry of Labor to identify the causes of major industrial accidents and hold those responsible strictly accountable.”

This content was produced with the assistance of AI translation services.