Increase in CEO Arrests Under Serious Accident Punishment Act... Companies Expand Investment in Fire Prevention

[Financial News] Since the implementation of the Serious Accident Punishment Act, cases of arrest of corporate executives have been increasing, strengthening companies' responses to ensure safety in industrial sites. In particular, awareness of fire prevention and safety management has significantly increased due to recent large-scale disasters, leading to the formalization of related investments and technology development.
According to the fire industry on the 29th, as direct legal responsibility for management executives becomes a reality, companies are actively investing in fire prevention and technology development. According to the Korea Employers Federation (KEF), 72% of all companies increased their safety management budget last year compared to 2021, before the implementation of the Serious Accident Punishment Act.
The Serious Accident Punishment Act contains provisions for punishing business owners or management executives when serious industrial accidents such as deaths occur. Recently, a fire disaster at the 'Banyan Tree' construction site in Haeundae, Busan resulted in 6 deaths and 27 injuries, and in connection with this, 2 representatives of the construction company and 6 subcontractor officials were arrested. This is the third case of management executives being arrested for violating the Serious Accident Punishment Act, following the fire at a primary battery factory in Hwaseong, Gyeonggi Province last year and the hazardous chemical leak accident at the Seokpo Smelter in Bonghwa County, Gyeongbuk.
Due to successive major fire accidents, companies are developing advanced fire prevention and response technologies. Mgen Solution plans to commercialize an AI-based fire detection and suppression robot in July. This robot detects fires with AI and can automatically suppress them within 30 seconds by spraying water or extinguishing agents on site. It also has autonomous driving capabilities, allowing it to recognize obstacles and move freely in complex industrial sites. The AI fire detection system recently installed at Garak Market detects and suppresses lithium battery fires, pre-recognizes vehicle locations and fire risks, and provides its own fire truck dispatch alarm function.
Fire safety equipment specialist Paratech is expanding its product line through the development of specialized technologies such as an energy storage system (ESS) fire suppression system and an autonomous driving fire patrol robot. In addition to producing various fire products such as sprinkler heads, flow control valves, synthetic resin pipes for firefighting, and residential automatic fire extinguishing devices, they are actively developing new products incorporating advanced technology. Recently, they supplied sprinklers and non-interlock valves to Coupang's Cheonan logistics center and Samsung Electronics, and signed a memorandum of understanding (MOU) with Gangnam Fire Station for joint development of an autonomous driving fire patrol robot.
As awareness of safety in industrial sites increases and related budgets rise, companies' performance is also increasing. Mgen Solution recorded a 106% increase in sales compared to the previous year, and Paratech recorded a 27% increase.
An industry official said, "Since the implementation of the Serious Accident Punishment Act, the perception that investing in safety can be considered in the event of an accident is spreading, leading companies to expand their investment in the safety field," adding, "This is expected to play a significant role in raising the overall safety level of industrial sites and preventing serious accidents in advance."
dschoi@fnnews.com Choi Doo-sun Reporter