[Unofficial translation provided by the Business & Human Rights Resource Centre]

“[Exclusive] POSCO slashed safety budget by ₩140 billion over three years; no fence at fatal accident site”, 6 August 2025

POSCO has reduced its safety infrastructure budget by ₩140 billion over the past three years. At the site of a recent fatal accident involving a drilling machine, even the most basic protective measures—such as safety fences—were absent.

On 28 July, at a highway construction site between Hamyang and Ulsan operated by POSCO E&C, a worker in his 60s was killed after becoming caught in a rotating drill. Apart from a fall-prevention harness, there were no barriers or fences in place to separate workers from the machinery.

The equipment required to prevent such an accident was inexpensive and standard, making the incident a “predictable disaster,” according to experts.

JTBC obtained a copy of POSCO Group’s “Safety Management Innovation Plan.” It revealed that from 2021 through last year, POSCO steadily reduced spending on safety measures. In particular, its “safety infrastructure” category—covering installation of equipment and physical safety systems—saw a ₩140 billion cut over the three-year period.

This reduction occurred despite continued fatal incidents across its sites. Following public criticism, the company issued an apology.

[Jeong Hee-min / Former POSCO E&C CEO (29 July)]

“We will reassess all potential hazards and overhaul our safety systems as a matter of corporate survival…”

However, the group’s innovation plan focused primarily on long-term reforms, such as restructuring subcontracting practices and establishing an AI-integrated safety services company—rather than urgent measures.

A senior government official told JTBC that POSCO E&C’s initial report to the president was “so inadequate” that the Blue House requested a revised submission.

Another accident occurred earlier this month at a POSCO E&C site, where a Myanmar worker in his 30s suffered an electric shock and remains unconscious. At the time, he was reportedly equipped with only a helmet and boots, with no additional protective gear.

In other media coverage, POSCO E&C stated that it “cannot yet confirm electrocution as the cause and will await the outcome of the investigation.” A company representative commented, “The worker is currently receiving treatment at the hospital, and we understand that the situation is not critical,” adding, “Please await the official results of the investigation.”