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[Chosun Ilbo] Joint Survey Result on the Severe Accident Punishment Act
In November 2021, the ECCK held a joint survey regarding the Severe Accident Punishment Act with The Korea Enterprises Foundation (KEF) and Chosun Ilbo. The ECCK would like to share articles published by Chosun Ilbo on the results of the survey.
Synopsis
According to the survey by the KEF and the ECCK with 121 companies’ participation showed more than half of foreign companies entering Korea as “negative for attractiveness of investment in Korea”.
In addition, 33.9% of foreign companies predicted that it would be difficult for foreign CEOs to return to their home countries if they were punished under the Serious Accident Act. Only 10.7% answered that they would be able to return to their home country, and 55.4% answered “don’t know”.
The biggest challenge caused by the Severe Accident Act was unclear scope and responsibilities of the manager(58.7%, multiple responses). The response that ‘the preparation period for compliance with the law was insufficient’ was followed by 46.3%, and they also expressed concern about the supervisory authority’s arbitrary law enforcement (33.9%) and excessive criminal punishment (33.1%).
There is also the possibility that the Severe Accident Act may cause disputes between countries. ECCK President Christoph Heider said, “ECCK will continue to monitor the Severe Accident Act for its member companies. said Jung-hee Lee, a professor of economics at Chung-Ang University, said, “The decline in investment by foreign companies is a sufficiently foreseeable side effect of the Severe Accident Act. It is highly likely that they are trying to avoid responsibility as much as possible by passing them on.”
[Chosun Ilbo] Joint Survey Result on the Severe Accident Punishment Act
In November 2021, the ECCK held a joint survey regarding the Severe Accident Punishment Act with The Korea Enterprises Foundation (KEF) and Chosun Ilbo. The ECCK would like to share articles published by Chosun Ilbo on the results of the survey.
Synopsis
According to the survey by the KEF and the ECCK with 121 companies’ participation showed more than half of foreign companies entering Korea as “negative for attractiveness of investment in Korea”.
In addition, 33.9% of foreign companies predicted that it would be difficult for foreign CEOs to return to their home countries if they were punished under the Serious Accident Act. Only 10.7% answered that they would be able to return to their home country, and 55.4% answered “don’t know”.
The biggest challenge caused by the Severe Accident Act was unclear scope and responsibilities of the manager(58.7%, multiple responses). The response that ‘the preparation period for compliance with the law was insufficient’ was followed by 46.3%, and they also expressed concern about the supervisory authority’s arbitrary law enforcement (33.9%) and excessive criminal punishment (33.1%).
There is also the possibility that the Severe Accident Act may cause disputes between countries. ECCK President Christoph Heider said, “ECCK will continue to monitor the Severe Accident Act for its member companies. said Jung-hee Lee, a professor of economics at Chung-Ang University, said, “The decline in investment by foreign companies is a sufficiently foreseeable side effect of the Severe Accident Act. It is highly likely that they are trying to avoid responsibility as much as possible by passing them on.”
Link to the articles
[Chosun Ilbo] 52% of foreign companies “to retract business when punished”
[Chosun Ilbo] Foreign company CEOs “responsible for things beyond their control… Who will come to Korea?”
[edaily] Imminent Enforcement of the Severe Accident Act, Corporate anxiety ignored