On September 4th, HD Hyundai announced plans to invest 3.5 trillion won (approximately $2.521 billion) in safety efforts in its shipbuilding sector over the next five years (ending by 2030). Through this investment, HD Hyundai aims to improve the group’s overall safety capabilities by establishing advanced safety systems, expanding safety facilities and equipment, raising employee safety awareness, and supporting safety initiatives at its partners.
Although HD Hyundai had previously allocated budgets for shipbuilding safety, this marks the first time it has publicly announced a trillion-won investment and detailed plans. Industry analysts in South Korea view this move as a preemptive response to the government’s aggressive push to reduce workplace fatalities.
While HD Hyundai has previously invested in shipbuilding safety, this is the first time it has publicly announced a trillion-won investment and detailed plans. Industry insiders believe this move is a proactive response to the South Korean government’s policy of actively promoting a reduction in workplace accident mortality.
South Korean President Lee Jae-myung has called for stricter penalties against companies with repeated major accidents. Shipbuilders including HD Hyundai Heavy Industries, Samsung Heavy Industries, and Hanwha Ocean have sounded the alarm, urgently needing to establish more rigorous on-site safety management systems.
During the State Council meeting on July 29, President Lee Jae-myung called for stricter penalties for major accidents and strongly condemned such practices, stating, “Enterprises should not pursue profits at the expense of workers’ lives and safety. The costs saved by neglecting safety are far less than the price paid after an accident occurs.” He also mentioned the need to improve relevant legislation, saying, “If the same type of fatal accidents occur repeatedly, consideration may be given to imposing punitive damages. Fines or penalties higher than the current level should be applied, so that the enterprises involved bear losses several times the amount of their economic profits.”
During the meeting, participants also expressed their intention to study the introduction of severe punishment measures for major disasters, such as “punitive damages”, “restrictions on participation in public bidding”, “business suspension measures”, and “restrictions on financial borrowing”.
At the same time, South Korea is pushing forward the revision of the Major Disaster Penalty Act and is reportedly considering further increasing the current upper limit of compensation for damages in the event of a major disaster (up to 5 times the loss).
In order to eradicate major disasters, the South Korean government has also implemented specific measures. For instance, the Ministry of Justice announced the establishment of a “special investigation team” within the prosecution to eliminate workplace fatalities. The National Police Agency will set up an investigation command system to coordinate handling industrial accidents and major disaster cases, while establishing specialized investigation teams at police agencies nationwide.
According to data from the HD Hyundai Heavy Industries union, 476 workers have died in industrial accidents at the company since its founding in 1974. The union accuses HD Hyundai Heavy Industries of concealing workplace injuries. It has even labeled the company a “death factory” and “the worst killer corporation.”
In response to increasingly stringent penalties for major accidents, HD Hyundai Heavy Industries implemented a new safety and health management system—The Safe Care—on August 18, aimed at eliminating major accidents.
HD Hyundai stated, “We have always prioritized ‘safety for all’ as one of our core values and continue to strengthen our safety operations system. We will further enhance safety awareness throughout the company and comprehensively deepen the development of a safety culture within the group.”
On the same day, HD Hyundai Group Vice Chairman Chung Ki-sun led senior executives in conducting on-site safety inspections at major production facilities. During the inspection of HD Hyundai Samho in Yeongam, South Jeolla Province, Vice Chairman Chung emphasized: “Safety is an irreplaceable core value, and the safety of our employees must always be our top priority.”
He emphasized, “Leaders’ decisions and actions have a profound impact on the establishment of a safety culture. I hope everyone will adhere to a site-centric management model until all production bases achieve ‘zero major accidents.'” During the visit, Vice Chairman Chung Ki-sun inspected the main equipment and high-risk work sites at HD Hyundai Samho Shipyard and held a symposium with the team leaders responsible for safety management practices.
Additionally, HD Hyundai plans to host the “HD Hyundai Safety Forum” in November this year, inviting all employees, government officials, and safety experts to participate and share their safety vision.