Legal Q&A
Q
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Hello. I am a business owner who operates a small company. What exactly is the Industrial Accident Compensation Insurance Act? Some say that under the Industrial Accident Compensation Insurance Act any company must subscribe without exception, while others say that certain occupations do not need to, so I am confused. Because I do not understand the Industrial Accident Compensation Insurance Act well.. as a business owner, must I subscribe to it? I would be grateful if you could let me know.
Industrial Accident Compensation Insurance Act
industrial accident compensation
industrial accident insurance
Answer
Published:
Author : Byung Joon KOH
You have asked a question about the Industrial Accident Compensation Insurance Act.
Industrial accident compensation insurance is insurance intended to promptly compensate a worker when an occupational accident occurs and to promote the worker's rehabilitation and return to society.
Industrial accident compensation insurance applies to all workplaces that use workers.
Therefore, if you operate a company, you must subscribe to it.
However, as you said, there are cases in which exceptions apply.
There are certain businesses, prescribed by Presidential Decree, to which it does not apply.
First, public officials and military personnel cannot subscribe to accident compensation insurance.
This is because separate statutes providing accident compensation, such as the Public Officials Accident Compensation Act and the Military Personnel Accident Compensation Act, have been established.
However, where the survivors' benefit for death in the line of duty applies, the provisions of the Industrial Accident Compensation Insurance Act and the accident compensation may each apply.
In addition, occupations that receive accident compensation under related laws, such as seafarers and private school faculty and staff, are also excluded from industrial accident compensation insurance.
Workplaces engaged in household employment activities, or workplaces in agriculture, forestry, fishing, or hunting that are operated by a non-corporate business with fewer than five workers, may also be excluded from subscription to the Industrial Accident Compensation Insurance Act.
Please note that if a workplace to which the insurance does not apply wishes to subscribe, it can do so with the approval of the Korea Workers' Compensation and Welfare Service.

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Byung Joon KOH
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Extensive experience handling large-scale corporate and white-collar crime cases · Attorney specializing in corporate/construction/labor/digital forensics law
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