Industrial accident insurance does not pay consolation money (위자료) and covers only part of your lost income during treatment. With an industrial accident damages lawyer, you need to work out who is responsible and how much of the insurance benefits you have already received must be deducted, and then claim the remainder.
Losses you can claim separately from industrial accident insurance
| Type of loss | Industrial accident insurance | Civil claim |
|---|---|---|
| Medical expenses | Paid as medical care benefits | Items the insurance leaves out, such as non-covered treatment |
| Income during the period off work | 70% of average wage | The difference from your actual income |
| Future income reduced by disability | Disability benefits (a fixed amount by grade) | The difference from lost income (일실수입) calculated using the rate of loss of work capacity and the working age limit (가동연한) |
| Consolation money (위자료) | None | Set according to how the accident happened, the degree of disability and the employer's negligence |
| Death | Survivors' benefits and funeral expenses | The difference in lost income, plus consolation money for the deceased and for the bereaved family members in their own right |
Insurance benefits are deducted only from losses of the same nature. Temporary incapacity benefits and disability benefits are deducted from lost income, and medical care benefits are deducted from medical expenses. Nothing is deducted from consolation money.
Who can be held responsible
| Defendant | Basis | Materials to check |
|---|---|---|
| The employer | Breach of the duty of care for safety (안전배려의무), employer's vicarious liability | Safety training records, issuance of protective equipment, work plans, risk assessments |
| Principal contractor (도급인) | The principal contractor's safety measure obligations under the Occupational Safety and Health Act (산업안전보건법), joint tort liability | The contract, and whether the principal contractor gave work instructions or managed the site |
| 3rd-party wrongdoer | Tort (for example, a driver in a traffic accident or an equipment rental company) | Accident records, dashcam footage, investigation records |
| The wrongdoer's insurer | Direct claim under auto insurance or commercial liability insurance | The terms of the insurance policy, the insurer's calculation details |
If a subcontractor's worker is injured at the principal contractor's workplace, the principal contractor can also be held responsible if it actually controlled the way the work was done and the safety facilities. This is especially important when the subcontractor cannot afford to pay damages.
Offset for your own negligence and deduction of insurance benefits
If the worker was partly at fault for the accident, the damages are reduced by the percentage of fault (과실상계). However, where the employer did not provide safety equipment or ordered excessive work, the worker's carelessness is often not weighed heavily. Showing in specific terms how many workers were on the job, how much pressure there was to work fast, and whether protective equipment was issued is the key to disputing the fault percentage.
The order in which the fault offset and the deduction of insurance benefits are applied, and the extent to which the Korea Workers' Compensation and Welfare Service (근로복지공단) can seek recourse (구상) against the wrongdoer, have been developed through Supreme Court (대법원) precedents, and the final amount can differ greatly depending on the calculation method. There is also a legal principle that survivors' benefits received by one bereaved family member are not deducted from the damages claims of the other heirs.
If an insurer or the employer offers a settlement amount, ask for a breakdown and check how much of the industrial accident benefits you have already received were deducted, and from which items.
Relationship to criminal proceedings and settlements
After a serious industrial accident, the business owner and the person in charge at the site are investigated for professional negligence resulting in death or injury, for violating the Occupational Safety and Health Act (산업안전보건법), and for violating the Serious Accidents Punishment Act (중대재해 처벌 등에 관한 법률). The employer's side often proposes a settlement to the bereaved family in order to reduce the punishment.
If the settlement agreement contains wording that waives all civil claims, you can no longer claim damages afterwards. Before signing a statement that you do not seek punishment (처벌불원서), calculate whether the settlement amount is reasonable compared with the civil damages and how it relates to the industrial accident benefits.
Order of a lawsuit
- Secure accident recordsRequest to view and copy the accident investigation report and the Ministry of Employment and Labor (고용노동부) and police investigation records
- Fix the industrial accident benefitsObtain the Korea Workers' Compensation and Welfare Service's decisions, such as the disability grade decision, first so that the amount to be deducted is fixed
- Physical examination appraisalDuring the lawsuit, the rate of loss of work capacity is confirmed through a court-ordered physical examination appraisal
- Calculate the damagesApply the fault offset and the deduction of benefits to lost income, medical expenses and consolation money
- Mediation or judgmentIn cases where the insurer is the defendant, mediation is common after the appraisal result comes out
Provisions on industrial accident damages
| Subject | Basis | Summary |
|---|---|---|
| Employer's damages and insurance benefits | Article 80 of the Industrial Accident Compensation Insurance Act (산업재해보상보험법) | Once insurance benefits are received, the employer is released from civil liability up to that amount |
| Accident caused by the act of a 3rd party | Article 87 of the Industrial Accident Compensation Insurance Act | The Korea Workers' Compensation and Welfare Service takes over (subrogation) the right to claim damages against the 3rd party, up to the amount of benefits it has paid |
| Principal contractor's safety measures | Article 63 of the Occupational Safety and Health Act (산업안전보건법) | The principal contractor also has safety and health obligations toward the workers of its related subcontractors |
| Limitation period for tort | Article 766 of the Civil Act (민법) | 3 years from the date you knew of the damage and the wrongdoer, and 10 years from the date of the wrongful act |
A claim against the employer can also be framed as a breach of the duty of care for safety under the employment contract (non-performance of an obligation), in which case the limitation period may be 10 years. However, evidence starts to disappear right after the accident, so it is better to prepare as early as possible.
Preparing an industrial accident damages claim
- Get the industrial accident approval decision and the details of the benefits paid to you from the Korea Workers' Compensation and Welfare Service.
- Secure photos of the accident site, messages with work instructions, and contact details of coworkers.
- Check the relationship between the principal contractor and the subcontractor, and the structure of the contract.
- If a criminal settlement offer comes, first check whether it contains wording that waives civil claims.
- Confirm with your attending doctor the point at which treatment has ended and the disability has become fixed.
- Record the date that is 3 years from the date of the accident.
Industrial accident damages: frequently asked questions
Must my industrial accident be approved before I can claim damages from the employer?
They say I was largely at fault. Can I still claim?
The subcontractor has closed down.
I was injured in a traffic accident while commuting.
Applicable law: Civil Act (민법), Occupational Safety and Health Act (산업안전보건법), Industrial Accident Compensation Insurance Act (산업재해보상보험법). Written based on the laws in force on 2026-09-17. This page provides general legal information and is not legal advice on a specific case. Labor laws and court decisions change often, so decide how to respond after consulting a lawyer who has reviewed your documents, such as your contract and any notices you received.
This page is an English translation of the Korean original. If the two differ, the Korean version prevails. Korean page ›