The current Act uses the “business-specific general rate” and the “individual performance rate,” which adds or reduces insurance premiums based on the ratio of insurance premiums paid by a business owner to insurance benefits paid by Korea Workers Compensation & Welfare Service to find a balance between the business owners who have tried to prevent industrial accidents and those who have not in the same type of business when calculating industrial accident insurance premiums.

The current individual performance rate by business discounts or reduces industrial accident insurance premiums with only performance in industrial accidents to the business’s workers, not including performance in industrial accidents to its subcontractors or temporary agency workers, which contributes to the so-called “outsourcing of hazards” where a business concerned about a discount in industrial accident insurance premiums uses subcontractors and temporary agency workers to do hazardous and dangerous work.

In this regard, this Act aims to reflect industrial accidents to subcontractors or temporary agency workers in the individual performance rate of the business using such subcontractors or temporary agency workers if the business has any liability for industrial accidents by violating restrictions on the use of subcontractors or temporary agency workers, and ultimately prevent the outsourcing of such hazardous work (Article 15, paragraphs 3 and 4 newly inserted).

Reflect industrial accidents to subcontractors or temporary agency workers in the individual performance rate of the business using such subcontractors or temporary agency workers if the business has any liability for industrial accidents by violating restrictions on the use of subcontractors or temporary agency workers (Article 15, paragraphs 3 and 4 newly inserted).