Home > Policy > News > News

Dongkuk Steel's Incheon Works and Lotte Mart's Iksan Branch pave way for shared growth through win-win OSH cooperation with their subcontractors

Download  Attachment Download

Jul. 12, 2017


There are principal contractors which have created a safe workplace by cooperating with their subcontractors in managing occupational safety and health.


Dongkuk Steel's Incheon Works, a principal contractor (parent company), has participated in the government's project for win-win occupational safety and health cooperation between principal contractors and subcontractors* in an effort to pursue shared growth with its suppliers (i.e. subcontractors). Under the project, the company provided a budget of about 500 million won to improve the work environment, for example by installing safety nets in dangerous facilities, and helped its seven suppliers establish a safety and health management system.


As a consequence, the seven suppliers were recognized as outstanding workplaces in risk assessment and became eligible to get a discount of up to 20% off their original industrial accident compensation insurance premiums.


* Under the project, each participating principal contractor establishes and implements a program together with its subcontractors to provide personnel and physical support to the latter. The project aims to reduce the safety and health gap between principal contractors and their subcontractors by upgrading the latter's level of accident prevention activities and safety and health management with support from the former. It has been implemented since 2012. A total of 991 parent companies and 8,524 suppliers had participated in it (cumulative total as of 2016).


In the service sector, the Iksan branch of Lotte Mart, a division of Lotte Shopping, set up a win-win cooperation team with its four suppliers, including one responsible for beautifying the environment of the Mart, to find workplace hazards together, and provided a budget of about 40 million won to create a cooperative work environment.


Stemtech, a second-tier supplier to Hyundai Motor, which produces car parts in the Second Chaesin Industrial Complex in Yeongcheon, North Gyeongsang Province, is an excellent example of a local SME creating a safe workplace together with its employees.


On its own initiative, the company, along with its 36 employees, has proactively participated in the government's risk assessment project* since 2012. With an investment of about 150 million won in improving its dangerous facilities, it has been accident-free since 2015. 


* 'Risk assessment' is a process in which a company identifies hazards in its workplace, estimates and determines the frequency and severity of any injury or disease that might occur due to such hazards, and establishes and implements measures to reduce those hazards. The number of companies recognized as outstanding workplaces in terms of risk assessment was 883 in 2013 → 3,898 in 2014 → 4,448 in 2015 → 5,217 in 2016.


Meanwhile, at the 50th Safety and Health Week ceremony, various exemplary cases of industrial accident prevention activities, including win-win OSH cooperation between principal contractor and subcontractor, were presented, and Dongkuk Steel's Incheon Works was selected as the most exemplary workplace. 


The companies' best practices presented during the presentation session will be posted on KOSHA's website and official SNS (blog, Facebook account, etc.). 


* 50th Safety and Health Week website( → bulletin board → seminar presentation materials

* KOSHA's website (→ project information/application →safety culture PR → Safety and Health Week (The best practices are to be uploaded.)

Last Modifide Date   :   Wed August 2, 2017
Back to top