The Serious Accidents Punishment Act of South Korea and Its Impact on the Shipping Industry: Toward Sustainability

Abstract

The Serious Accidents Punishment Act (SAPA) of South Korea mandates that chief executives secure operational safety and health to prevent industrial and civil disasters. The SAPA imposes civil and criminal responsibilities on chief executive officers, including business owners, for fatal accidents due to safety and health measures violations. We examine the SAPA’s challenges to the shipping industry and the measures taken by ship owners and ship management companies to address them. In the modern shipping industry, ships and crew often have different nationalities; hence, it may be difficult to determine which law applies or where liability lies. Business activities are mostly overseas. Ship management is performed by third parties, and the introduction of autonomous systems is leading to crew reductions and other changes; these factors create uncertainty about the SAPA’s applicability. Therefore, legal requirements and measures must be established to ensure that South Korean shipping companies do not take on excessive responsibilities internationally while still protecting workers and others. This study suggests measures to ensure safety and stability in the South Korean shipping industry following the SAPA through a horizontal comparative analysis with the UK’s Corporate Manslaughter and Corporate Homicide Act 2007, which served as a model for the SAPA.