South Korean shipyard to invest over US$1 billion for safety improvements

South Korean shipbuilder Hanwha Ocean has confirmed its intention to invest the equivalent of US$1.3 billion over the next three years to significantly improve upon existing safety practices.

Hanwha Ocean said its permanent budget for safety prevention will be expanded every year over the next three years.

The company said that, in order to fundamentally improve the safety structure and build an advanced safety culture, the equivalent of US$630 million will be additionally invested over three years across six areas. Through this, the company plans to fundamentally resolve potential factors that can threaten safety at work sites, practice safety-first management, and realise an accident-free workplace.

"As a result of a thorough analysis of internal and external criticisms and safety status, we have determined that it is necessary to overhaul the existing safety management system," said Hanwha Ocean CEO Kim Hee-chul. "We would like to review it at a more thorough and fundamental level for safety management."

The company has come under criticism following two fatal accidents at its Geoje shipyard earlier this year. The more recent of the two accidents occurred earlier this month when a labourer employed by a subcontractor died of injuries he sustained after falling from a height of 30 metres at one of the yard's floating docks.