MANAGEMENT COST · Cost Guide
Occupational Safety &
Health Management Cost at a glance
A legally mandated cost for construction and shipbuilding projects to prevent industrial accidents. Understand the cost structure and build an efficient budget plan.
OVERVIEW ›
Four things to understand about safety management costs
These four points give you a quick grasp of the full structure.
What is it?
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.
Who must allocate it?
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.
How is it calculated?
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.
What can it be spent on?
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.
DETAIL ›
What is the Occupational Safety & Health Management Cost?
A legally mandated cost for preventing industrial accidents in construction and shipbuilding work.
The Occupational Safety & Health Management Cost ('safety management cost') is a statutory cost under , requiring those carrying out construction or shipbuilding/repair work to include it in the project contract price and use it exclusively for industrial accident prevention.Article 30 of the Occupational Safety and Health Act, requiring those carrying out construction or shipbuilding/repair work to include it in the project contract price and use it exclusively for industrial accident prevention.
The cost is intended to prevent industrial accidents in construction and shipbuilding/repair projects, covering safety manager salaries, safety facilities, protective equipment, training, and more.
The latest standard has been in effect since 12 February 2025 under the Ministry of Employment and Labor Notice 'Standards for Calculation and Use of Occupational Safety & Health Management Costs in the Construction Industry' (Notice No. 2025-11).Standards for Calculation and Use of Occupational Safety & Health Management Costs (Notice No. 2025-11)or Notice 'Standards for Calculation and Use of Occupational Safety & Health Management Costs in the Construction Industry' (Notice No. 2025-11).
COST ›
Self-management vs. SenseZero solution
Using SenseZero solutions can cut costs by up to 70% compared to self-management.
Self-managed
- ×Dedicated safety & health personnel (KRW 40–60M / yr)
- ×Safety equipment & system construction (KRW 20–50M / yr)
- ×Training & consulting costs (KRW 10–30M / yr)
- ×Maintenance & updates (KRW 5–15M / yr)
SenseZero solution
- ✓All-in-one safety management platform (replaces dedicated headcount)
- ✓IoT wearable devices included
- ✓AI-based risk prediction and automated alerts
- ✓Statutory training and consulting support included
FAQ ›
Frequently asked questions
Answers to common questions about occupational safety & health management costs and safety spending.
The 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.
Start safety management without worrying about cost
SenseZero takes responsibility for worksite safety at the optimal cost.