Court Ruling Sparks Outrage: Did the Sampi Group’s CEO Escape Accountability Under the Serious Accident Punishment Act?

On February 10, the leaders of South Korea’s two major labor unions strongly condemned the acquittal of Jeong Do-won, chairman of the Sampyo Group, who was charged with violating the Serious Accident Punishment Act. They accused the court of undermining the law and demanded an immediate appeal by the prosecution.

The Korean Confederation of Trade Unions (KCTU) issued a statement denouncing the first-instance ruling, calling it a decision that effectively nullifies the Serious Accident Punishment Act and grants a blanket pardon to corporate leaders and top executives.

The KCTU argued that the Sampyo case, being the first since the law’s implementation, should have set a precedent that top executives cannot escape responsibility for worker deaths. However, they pointed out that the court failed to hold the chairman and highest-ranking officials accountable even in this landmark case.

They further noted that while Sampyo Industries appears to operate under professional management, the parent company, Sampyo Co., holds a 98.25% stake, with over 77% of that share controlled by Jeong’s family. This ownership structure, they emphasized, demonstrates that ultimate decision-making authority and control over Sampyo Group’s core business lies with the chairman.

The KCTU stressed that the Serious Accident Punishment Act was enacted to hold accountable those who make crucial decisions about a company’s organization, budget, and personnel. They argued that punishing those with the authority to establish safety and health management systems is essential to prevent workplace accidents. However, they criticized the court for narrowly interpreting managerial responsibility, effectively limiting it to on-site managers. This interpretation, they warned, could serve as a precedent for exonerating executives in future trials.

The Federation of Korean Trade Unions (FKTU) also expressed deep concern over the ruling and strongly urged the prosecution to appeal immediately.

The FKTU reiterated that the Serious Accident Punishment Act was designed to ensure that top corporate executives recognize the importance of workplace safety and fulfill their preventive responsibilities. They noted that in this case, both the chairman and the corporation were found not guilty, with blame placed solely on the safety officer and on-site personnel.

They cautioned that narrowly interpreting the responsibility of top decision-makers within the complex governance structures of large corporations could lead to companies distributing or evading responsibility through their organizational structures. This, they argued, could ultimately weaken the system for preventing serious accidents.

Meanwhile, the Uijeongbu District Court’s Criminal Division 3, presided over by Judge Lee Young-eun, acquitted Jeong of charges related to violations of the Serious Accident Punishment Act. Two former and current executives, who faced charges of violating the Industrial Safety and Health Act and negligent homicide, were also found not guilty.

The court explained that it was difficult to conclude that Jeong held a position where he could effectively fulfill obligations under the Serious Accident Punishment Act. It added that Jeong’s participation in group-level meetings could not be definitively considered as forums for making safety and health management decisions.

Jeong and six former and current employees stood trial for allegedly failing to adhere to safety obligations in connection with an incident on January 29, 2022. The accident occurred at a gravel extraction site in Doha-ri, Eunyeon-myeon, Yangju City, where a landslide during rock blasting resulted in the deaths of three workers.