Infrastructure construction giant Posco E&C implements crisis management system, temporarily pauses acceptance of new contracts for construction projects.
Posco E&C Takes Steps to Reform Subcontracting Structure and Enhance Safety Management
After a series of fatal industrial accidents in 2025, POSCO E&C, a construction company under the Posco Group, has initiated a comprehensive overhaul of its safety culture and subcontracting structure.
On August 6, the company appointed Song Ki-young as the new president, emphasizing a complete reorganization of the company-wide safety management system to prevent future disasters and foster a strong safety culture centered on construction sites.
In response to multiple worker deaths, POSCO E&C had already halted all work at its sites nationwide pending comprehensive safety inspections and initiated a company-wide task force incorporating external safety experts and regulators to overhaul its safety systems.
The company decided to temporarily suspend new orders in its infrastructure business sector, prioritizing workplace safety over business expansion until public trust is restored and a safer environment is guaranteed.
Song Ki-young, in his first public appearance since taking the position, visited the Gwangmyeong construction site on Wednesday. He pledged to prevent further accidents, aiming to eliminate accidents at their root. At the site, he inspected the safety management system and expressed his intention to establish an effective, field-oriented safety culture.
The accidents at POSCO E&C-operated sites have prompted the company to take emergency measures and suspend new orders. This is the fourth fatal accident this year at Posco E&C-operated sites. A Myanmar national in his 30s was critically injured and lost consciousness in a suspected electrocution accident at a Posco E&C-operated expressway construction site, located about 20 kilometers south of Seoul.
The former CEO of Posco E&C, Jeong Hee-min, resigned following the series of fatal accidents. The company stated that any business expansion would be meaningless without restoring public trust first.
Government authorities, including the Ministry of Land, Infrastructure and Transport and the Ministry of Employment and Labor, are reviewing potential punitive actions such as cancellation of POSCO E&C’s construction license and prohibition from public bidding due to repeated serious safety violations. The Ministry of Labor has launched investigations into violations of safety laws, including the Serious Accident Punishment Act, reflecting increased regulatory scrutiny and pressure on POSCO E&C to improve safety and subcontracting practices.
POSCO E&C is preparing institutional and on-site supplementary measures in stages, involving expert opinions to address the chronic subcontracting structure problem prevalent in the broader construction industry, aiming to establish a model reform case for Korea. The company plans to gather expert opinions to develop institutional measures aimed at reforming its subcontracting structure.
This news marks a significant step for POSCO E&C as they work towards restoring public trust, improving safety, and addressing the root causes of the accidents that have occurred at their sites.
Finance and leadership roles are critical during POSCO E&C's industry-wide reform to address subcontracting issues and enhance safety management, as the company aims to gain public trust and implement long-lasting improvements. The new president, Song Ki-young, is tasked with establishing an effective safety culture to prevent future disasters, which may involve collaborating with financial experts to ensure suitable resource allocation for this transformation.
