In case of death in a single company, institutional investors are also subject to sanctions.

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While the ruling Democratic Party and the Democratic Party have decided to enforce the Law on Punishing Companies with Major Accidents, pension funds such as the National Pension Service and institutional investors are also subject to sanctions when disaster strikes. important in an invested company. This is due not only to company representatives and executives, but also to those who are not involved in management, but exert considerable influence on business decisions.

According to the Severe Accident Corporate Punishment Act initiated by Democratic Party member Park Joo-min on the 28th, the corporation’s business is not only the representative director and director of the corporation, but also the ‘management manager ‘who is supposed to be responsible in the event of a major disaster. Those who have significant influence or are in a position to participate substantially in such decisions were included ”(article 2, paragraph 11 (c)).

In the legal world, it was interpreted as a provision directed at owners such as the CEO and directors, as well as the honorary president leaving the front line of management. Furthermore, it is believed that pension funds such as the National Pension Service and investors from major institutions can be included as subjects who have “significant influence on business decisions”. The same goes for the bill initiated by Justice Party legislator Eun-mi Kang.

In the case of the National Pension System, it owns a 10.6% stake in Samsung Electronics. The share of investment in national pensions in the main national companies such as POSCO 11.8%, SK Hynix 10.2% and LG Chem 10.0% is high. In particular, the National Pension Service has been actively exercising shareholders’ rights since the Administration Code was introduced in 2018.

The ten main items invested by the National Pension Service. Source = National Pension Plan

According to the Law on Corporate Penalties for Severe Accidents, a serious disaster refers to an accident in which △ one or more workers are killed, △ two or more injured persons appear who need medical attention for three months or more, or △ occur 10 or more injured or sick people. In the event of a fatal accident, the employer and the administration manager are subject to a prison sentence of two years or more or a fine of 500 million won or more. Under the bill, if a fatal accident occurs at LG Chem, the head of the Administration Division of the National Pension Fund could be sanctioned.

Gwon Jae-yeol, a professor at Kyunghee University School of Law, explained: “From the current provision, it is not clear to what extent the term ‘significant’ is,” he said. “There is room for institutional investors to actively participate in decision-making through the administration code in advance.” did.

Professor Kim Min-ho from Sungkyunkwan University School of Law said: “It seems that not only the owner who has retired from the front line of management, but also investors from major institutions,” he said: There is a lot of room for interpretation and it violates the principle of clarity.

Meanwhile, the government plans to present a government draft of the Law on Business Sanctions for Severe Accidents to the Judicial Legislative Committee of the National Assembly.

Reporter Mi-Hyun Cho [email protected]

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