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

While the ruling Democratic Party and the Democratic Party have decided to enforce the Act on the Punishment of Severe Accident Enterprises, pension funds such as the National Pension Service and institutional investors are also found to be subject to punishment when a major disaster occurs in an invested company. This is because not only the representatives and executives of the company, but also those who do not participate in management, but exert considerable influence over 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 assumed to be responsible for a serious disaster Those who have a significant influence on or are in a position to substantially participate in such decisions’ (Article 2, paragraph 11(c)) were included.

In the legal world, it was interpreted as a provision aimed at owners such as the CEO and directors as well as the honorary chairman who left the front line of management. In addition, it is believed that pension funds such as the National Pension Service and investors in major institutions can be included as subjects that have a’significant influence on business decisions’. This is the same for the bill initiated by Justice Party lawmaker Eun-mi Kang.

In the case of the National Pension System, it owns a 10.6% stake in Samsung Electronics. The proportion of national pension investment in major domestic companies such as POSCO 11.8%, SK Hynix 10.2%, and LG Chem 10.0% is high. In particular, the National Pension System has been actively exercising shareholder rights since the Stewardship Code was introduced in 2018.

According to the Severe Accident Corporate Penalty Act, a serious disaster refers to an accident in which △one or more workers died, △two or more injured persons who need medical care for three months or more appear, or △10 or more injured or sick persons occur. In the event of a fatal accident, the employer and the manager of management are subject to imprisonment for two years or more or a fine of 500 million won or more. According to the bill, if a fatal accident occurs in LG Chem, the head of the National Pension Fund Management Division could be punished.

Gwon Jae-yeol, a professor at Kyunghee University Law School, explained, “From the current provision, it is unclear to what extent the expression’significant’ is,” he said. “There is room for institutional investors to actively participate in decision making through the stewardship code in advance.” did.

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

Meanwhile, the government is planning to submit a government draft of the Severe Accident Business Penalty Act to the National Assembly Legislative Judicial Committee.

Reporter Mi-Hyun Cho [email protected]

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