South Korean court raises SPL fine to $1.4 million over fatal bakery accident, increases ex-CEO's sentence

A South Korean appeals court has significantly increased a corporate fine against bakery firm SPL to 2 billion won ($1.4 million) following a fatal accident where a young worker died after being caught in machinery. This penalty is the highest ever levied on a corporation in a serious industrial accident case.

The appellate court overturned a lower court's 100 million won fine, imposing the much larger penalty. It also increased the sentence for former SPL CEO Kang Dong-seok, sentencing him to two years in prison, suspended for three years, a heavier penalty than the one-year suspended sentence he received in the initial trial.

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The factory manager knew that workers were operating the mixer with the cover open, without any protective measures, and took no action, leading to the victim's death.

Three other company officials, including the factory manager, received suspended prison sentences ranging from 10 to 4 months, mirroring the first trial's outcome. The court found the company guilty of violating industrial safety laws, specifically by failing to ensure proper safety measures around a mixing machine. The factory manager was aware that workers were operating the mixer without its safety cover but took no action, leading to the fatal accident.

The court held the company responsible under joint liability provisions for the factory manager's negligence. Regarding the former CEO, the court stated that his failure to conduct mandatory safety inspections at least twice a year and his reliance on a subordinate's inadequate compliance report, without further inquiry, demonstrated a lack of due diligence and intent, leading to the serious accident.

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The defendant violated the duty to inspect the implementation of safety and health laws at least once every six months, and it is sufficiently recognized that a serious accident occurred due to this, and intent is also recognized.