hankyoreh

near a toxic chemical leak from a factory

By Kim Su-heon and Lee Myung-sub, staff reporters

The National Assembly Environment and Labor Committee passed a bill on Apr. 24 that would fine companies up to 10% of their sales in the event of a major chemical leak.

Passage of the full amendment to the Toxic Chemicals Control Act was met with strong objections by businesses, which called its penalties “excessive.”

The amendment would impose penalties of up to 10% of sales on businesses that harm people or the environment through violations of an order to cease all handling of toxic chemicals, or that cause human, property, and environmental damages through chemical leaks resulting from incorrect handling. It would also assess a penalty of up to 10% of sales in lieu of a suspension of operations for violations of toxic chemical handling standards.

The committee explained that the amendment was intended to hold businesses accountable for accidents resulting in the release of harmful chemicals. In particular, it noted complaints about inadequate chemical management methods, response capabilities, and restitution in the wake of a recent series of high-profile chemical leaks, including hydrogen fluoride spills at the Gumi Industrial Complex and Samsung Electronics.

The original bill that passed the committee’s legislative review subcommittee set the penalty at up to 50% of sales. The level was reduced to 10% during plenary session discussions after some members objected to the original figure as being “excessive.”

The amendment also includes other provisions to improve the accident prevention system for chemical leaks. Companies that are ruled likely to affect the population or environment outside the workplace in the event of a chemical leak would be required to draft an impact assessment for the surrounding area and submit it to the Ministry of Environment. Companies would also be responsible for any chemical handling violations by their subcontractors.

The bill is scheduled to go before the National Assembly late this month following a review by the Legislation and Judiciary Committee.

Businesses were up in arms over passage of the bill, which they said would have “severe side effects.”

“When penalties are this excessive, you could see companies concealing any accidents that occur,” warned a source at one large corporation.

“It’s a burden for large companies, but it could be fatal for SMEs,” the source added.

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