“The company in charge of construction is responsible for the on-site fire” [Banyan Tree fire]

Before taking over the hotel management business
The liability theory of the construction company prevails.

Interest is growing about who is legally responsible for the fire at the construction site of a high-end hotel and resort in Gijang-gun, Busan, in which 6 people died and 27 were injured. In the legal world, there is an analysis that there is a high possibility of legal liability for the construction company that directly managed and supervised the construction site.

According to the Busan Police Agency on the 17th, the construction company was responsible for completing the fire at the ‘Banyan Tree Haeundae Busan Hotel & Resort’ in Yeonhwa-ri, Gijang-gun on the 14th by November of last year, but construction continued beyond the deadline. At the time of the fire, 841 workers from 40 subcontractors were carrying out various tasks at the site. Because of this, materials were piled up everywhere.

The legal world believes that it is highly likely that the construction company will be held legally responsible. Attorney Dong-il Park, CEO of Daeryun Law Firm, said, “Currently, both the developer and the construction company are known to be different companies, and it appears that the construction company that directly hired workers and managed and supervised the construction site will not be able to escape responsibility.” Song Young-in, a lawyer at Compass Law Firm, said, “There is a high possibility that the responsibility of the construction company and the contracting or partner company will be acknowledged,” and added, “If there is no special agreement, the developer may be less liable than the construction company.”

Another key issue is whether or not the Act on Punishment of Serious Accidents, etc. (Serious Accident Punishment Act) has been violated. Attorney Choi Jae-won of Siwoo Law Firm analyzed, “We need to look at the outline of the case in detail, but there is a good possibility that the Serious Accident Punishment Act will be applied because six workers died. The most important thing seems to be whether work guidelines and safety management were properly followed.” Another lawyer explained, “It seems inevitable that the Serious Accident Punishment Act will be applied, but a complex legal dispute over responsibility is expected as the issue of compensation to victims and bereaved families must also be addressed.”

There is also controversy over whether the deceased worker should be covered by insurance. Employers who employ workers must subscribe to both employment and industrial accident insurance. Of course, daily workers are also eligible to join. The surviving family of Mr. A (44), who died in the fire, claimed that Mr. A was not insured. However, the Korea Workers' Compensation and Welfare Service said, "The accident site is covered by industrial accident insurance and employment insurance."

Reporter Kim Seong-hyeon (kksh@busan.com)

Reporter Yang Yang (bogiza@busan.com)

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“The company in charge of construction is responsible for the fire at the site” [Banyan Tree fire] (Shortcut)