A legally mandated cost for construction and shipbuilding projects to prevent industrial accidents. Understand the structure and plan an efficient budget.
Overview
These four points give you a quick grasp of the full structure.
Under Article 30 of the Occupational Safety and Health Act, this is a cost item separately allocated within project budgets for construction and shipbuilding/repair work, to be used exclusively for industrial accident prevention.
Anyone ordering or carrying out construction or shipbuilding/repair work must mandatorily allocate this cost at the time of the construction contract, based on the contract value. From 2025, unit-price contracts of KRW 20 million or more are also included.
The 'eligible cost base' — the sum of designated items within the project cost (labour, materials, direct expenses) — is multiplied by a rate that varies by project type and scale. Rates increased by an average of approximately 19% from January 2025.
Permitted uses include safety manager salaries, safety facility installation, personal protective equipment, health check-ups and emergency equipment, safety & health training, smart safety equipment, and construction accident prevention technical guidance fees.
The scheme
A legally mandated cost for preventing industrial accidents in construction and shipbuilding work.
Cost comparison
Using SenseZero solutions can cut costs by up to 70% compared to self-management.
Self-managed
Recommended
Up to 70% cost savingsThe safety management cost is not simply a flat percentage of the total project cost. First, an 'eligible cost base' is calculated from designated items within the project cost (labour, materials, direct expenses), and then a rate specific to the project type and scale is applied to that base.
The full price is not recognised at 100%. Recognised ratios and spending limits as a proportion of the total safety management cost apply together within the scope defined by the notice. As of 2025, smart safety equipment purchase/rental is phased in: 40% (2024) → 70% (2025) → 100% (2026), with a ceiling of 20% of the total safety management cost per project.
No. Using safety management costs for purposes other than industrial accident prevention may result in deduction, recovery, or sanctions. The Ministry of Employment and Labor commentary separately specifies examples of non-permitted use and sanction criteria.
The occupational safety & health management cost described here is a regime under Article 30 of the Occupational Safety and Health Act, targeting construction and shipbuilding/repair work specifically. General manufacturing also has safety budget obligations, but under separate standards and regulations distinct from the construction-sector safety cost notice.
It varies by worksite scale and industry, but worksites with 50 or more workers typically require a minimum of KRW 30–50M per year. Using SenseZero solutions can reduce this cost by up to 70%.
Under the Occupational Safety and Health Act, worksites above a certain scale must appoint safety & health managers. However, improving operational efficiency with SenseZero solutions allows legal requirements to be met with minimum staffing.
The average ROI for companies that deploy SenseZero is 150% in year 1 and 300%+ from year 2 onwards. This includes personnel cost savings, insurance premium reductions from accident prevention, and the effect of avoiding legal penalties.
Yes. We offer a range of pricing plans from a Light plan for small worksites (5–50 workers) to an Enterprise plan for large-scale operations.
SenseZero takes responsibility for worksite safety at the optimal cost.
