K-Water strengthens legal aid for accident-linked employees before CEO's exit

South Korea's state-run Korea Water Resources Corp. (K-Water) has amended its internal rules to enhance legal support for employees involved in industrial accidents, a move that has drawn criticism for potentially benefiting outgoing CEO Yoon Seok-dae.

The revision, confirmed on June 15, modifies the "Disaster Compensation and Liability Regulations." It now explicitly includes "former employees" in the scope of legal cost compensation, following deliberation by a review committee. This change allows for post-incident reimbursement of legal fees, even for lawyers hired independently by former employees, provided the review committee deems it necessary.

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The review committee may include former employees if deemed necessary.

This regulatory update comes just a week before Yoon's term ends on June 18. Yoon is currently under investigation for alleged violations of the Serious Accidents Punishment Act and the Occupational Safety and Health Act related to an industrial accident at the Unmundam dam construction site in April, which resulted in the deaths of two subcontracted workers.

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The company may have to bear costs it previously wouldn't have. Setting claim limits is crucial to prevent moral hazard.

Legal experts expressed concern over the revised policy. Kim Kyung-soo, head of K-Water's Serious Accidents Center at Yulchon Law Firm, warned that the company might bear costs it previously wouldn't have. He suggested that setting limits on claims is crucial to prevent moral hazard.

Son Ik-chan, a lawyer at Yilwa Saram Law Firm, noted that while legal fee support is common, covering damages or fines is rare. He suggested the timing and nature of the revision could be interpreted as a change made specifically for the outgoing CEO. Kim also deemed it inappropriate for a public enterprise to cover fines individuals must pay.

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While legal fee support is common, covering damages or fines is rare. This change could be interpreted as being made for the outgoing CEO.

K-Water defended the revision, stating it is unrelated to any specific investigation or executive's term expiration. The company asserted that the support is provided after strict review by a committee for legal disputes arising from unavoidable work processes. They added that the change aims to protect current and former employees facing prolonged investigations and that similar systems are already in place at other public institutions.

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It is inappropriate for a public enterprise to cover fines that individuals must pay.