Lee "Considering Revocation of POSCO E&C License"..Construction Companies on High Alert

[Financial News] President Lee Jae-myung has ordered a review of 'construction license revocation' in response to a series of fatal accidents at POSCO E&C construction sites, putting the construction industry on high alert. While expressing their dismay, saying "walking on thin ice," concerns are also being raised that "punishment is not the solution."
Kang Yoo-jung, spokesperson for the presidential office, said at a briefing held at the Yongsan presidential office on the 6th, "President Lee Jae-myung has instructed a thorough check on whether POSCO E&C's manuals were followed and a detailed investigation into whether the accidents could have been sufficiently prevented." In particular, President Lee ordered, "Review all possible measures under current law, such as revoking construction licenses and banning public bidding, and report back," emphasizing the need for the strongest possible administrative and judicial actions.
Additionally, President Lee added, "Prepare additional punitive measures such as punitive damages to prevent such serious industrial accidents from recurring." This effectively declares a 'zero tolerance policy' for repeated safety accidents. 
In response to this tough stance, the construction industry appears extremely intimidated beyond dismay. An official from a large construction company, Company A, said, "Coincidentally, accidents occurred consecutively at one company, but it doesn't feel like someone else's problem," adding, "All construction companies have strengthened their safety management measures, and manuals are certainly in place on site." An official from Company B also reported, "All construction companies prioritize safety, and have effectively entered an emergency mode."
There are also opinions that fundamental solutions cannot be found with regulations of a 'one-strike' nature. An official from Company C stated, "If punishment is repeated every time an accident occurs, it can only lead to passing the buck," and added, "Mentioning license revocation seems to imply reviewing legal methods to manage safety well." They also added, "If the construction business itself is stifled, we must also worry about the broader societal issues that follow."
With the National Assembly expected to accelerate discussions on the 'Construction Safety Special Act,' which imposes fines of up to 3% of annual sales or suspends operations for up to one year in the event of an accident, there are concerns that the industry could face a 'survival crisis.' An industry official expressed concern, "With the construction industry already struggling with a business downturn, if the Construction Safety Act focused on punishment is passed, most construction companies will collapse," adding, "If the construction industry is hit, the impact on employment will also be significant, so caution is needed."
Meanwhile, as POSCO E&C CEO Jeong Hee-min took responsibility for the series of serious accidents and resigned on the 5th, Song Chi-young, head of the POSCO Holdings Group Safety Special Diagnosis TF Team (Vice President), was appointed as the new CEO. Born in 1964, the new CEO Song served as the head of the Safety and Environment Department at POSCO Pohang Steelworks from 2019 to 2021 and as the Chief Safety and Health Officer (CSO) at POSCO E&C from 2021 to 2023. The appointment of a field-oriented safety expert as the new CEO is interpreted as an intention to emphasize 'safety-centered management.'
A POSCO E&C official stated, "The new CEO Song started work immediately today," adding, "We plan to thoroughly review government policies and establish and implement safety plans."
ming@fnnews.com Jeon Min-kyung, Seong Seok-woo reporters