Lawmakers pass a bill to prevent workplace accidents at the National Assembly in Seoul, in this file photo from Jan. 8, 2021. The Serious Accidents Punishment Act under which employers could face a minimum one-year prison sentence in the event of a major accident is set to expand to small businesses this week despite calls for more preparation time amid a political deadlock. Newsis 

An industrial law under which employers can face a minimum one-year prison sentence in the event of a major accident is set to be extended this week so as to include small businesses, despite calls for more preparation time.

The Serious Accidents Punishment Act, which came into force in 2022 to reduce accidents at workplaces run by larger companies, will also be applied to those with five to 49 employees on Jan. 27 after a grace period. If workers die or sustain major injuries as a result of insufficient safety measures, business owners or managers may face at least one year behind bars or fines up to 1 billion won ($750,000) — an amount that could bankrupt a small business.

As many business operators remain underprepared and ill-equipped for its implementation, their representatives as well as the ruling People Power Party (PPP) are calling for a reprieve of two more years so as to better prepare themselves. But as of Sunday, the main opposition Democratic Party of Korea (DPK) has refused their requests.

In a statement, the Korea Automotive Industry Alliance urged the National Assembly to approve a bill introduced by the PPP to postpone its implementation until January 2026.

“Auto parts companies with 49 or fewer employees account for more than 94 percent of the total,” the organization said. “Many companies have already been struggling amid the transition to electric vehicles … If the law comes into force now, many will go out of business.”

If given more time, the group said it would work harder with the government to expedite their preparations, adding that it will require more time and state support.

The DPK said it would cooperate to extend the grace period only if three conditions were met: the government admits its failure to help businesses prepare over the past two years, establishes an independent government agency for workplace safety matters and promises no more excuses regarding any further delays after the two-year extension.

Ahead of the general elections, which are to be held in three months' time, the government is not expected to agree to any of these demands out of concern that the DPK would exploit them to its political advantage. Last week, Rep. Jung Hee-yong, a spokesman for the PPP, made it clear that the party would not accept such conditions.

The law would apply not just to companies in what are considered high-risk industries such as construction and manufacturing but also to bakeries, restaurants, coffee shops and cram schools that employ five or more workers.

It requires owners and managers to take proactive measures with “staff and a budget” that would be needed to prevent accidents. A fatal accident or one in which two or more employees sustain injuries that would require six months of treatment or longer could result in the prosecution of the owners or managers. In case of gross negligence, penalties could be particularly heavy.

One big problem is that many small businesses cannot afford to hire a safety supervisor or a person with such expertise. Recent polls show that most small business owners say they are not ready for the law; some say they are not even aware of it.

At a Cabinet meeting on Jan. 16, President Yoon Suk Yeol also called for the DPK to delay its implementation while promising to expand government support to help small businesses adjust to and prepare for the law.