"Protect All Workers"... 270,000 Special Employment Workers Including Door-to-Door Salespeople to Receive Industrial Accident Benefits

From Next Month, Mandatory Industrial Accident Insurance Applies to 5 Special Employment Types
Industrial Accident Insurance Premiums Shared Equally by Special Workers and Employers
Employers Must Report to the Corporation by August 15
Legislation to Reduce Premiums Underway... Reasons for Exemption to Be Narrowed

[Image source=Yonhap News]

[Asia Economy Reporter Kim Bo-kyung] Starting from the 1st of next month, industrial accident insurance will be applied to five special types of workers (special types of employment, or "teukgo") including door-to-door salespersons and freight truck owners. The industrial accident insurance premiums will be shared equally, with 50% paid by the employer and 50% by the teukgo. The government expects that approximately 274,000 people will benefit from this industrial accident insurance measure.

On the 29th, the Ministry of Employment and Labor announced that from July 1, industrial accident insurance will be mandatorily applied to five teukgo occupations that had previously been blind spots in industrial accident compensation: door-to-door salespersons, visiting teachers, rental product inspection personnel, home appliance installation technicians, and freight truck owners.

Currently, 490,000 teukgo workers in nine occupations, such as insurance planners and private tutors, receive industrial accident compensation under the same standards as regular employees. However, considering the total estimated teukgo workforce of up to 2.21 million, the scope of teukgo protected by industrial accident insurance has been criticized as somewhat limited.

Accordingly, after gathering opinions from labor and management, the scope of teukgo covered by industrial accident insurance has been expanded to include visiting service workers (four occupations, 199,000 people) and freight truck owners (75,000 people).

The newly covered teukgo will be mandatorily subject to industrial accident insurance starting from the 1st of next month. Regardless of whether the employer has registered for industrial accident insurance or paid premiums, if a work-related accident occurs, compensation will be provided. However, if the teukgo worker themselves has applied for exemption from coverage, they will not receive compensation.

Industrial accident insurance premiums will be collected in full from the employer, who will withhold 50% of the premium corresponding to the teukgo worker’s share.

Employers who have contracts with teukgo workers in these five occupations must report this fact to the Korea Workers' Compensation and Welfare Service by August 15. A Ministry of Employment and Labor official stated, "If the legal reporting obligation is not fulfilled, additional premium collection and fines may be imposed." Even if a work-related accident occurs while the teukgo is not enrolled in industrial accident insurance, compensation will not be an issue, but 50% of the insurance benefits will be subsequently collected from the employer.

Additionally, the Ministry of Employment and Labor will promote improvements to the industrial accident insurance system. Legislation will be pursued to temporarily reduce industrial accident insurance premiums for both teukgo workers and employers in high-risk, low-income occupations.

Currently, teukgo workers can apply for exemption from industrial accident insurance coverage for any reason, but going forward, exemption applications will only be allowed in cases of unavoidable leave due to injury or illness.

Measures will also be prepared to address the blind spots in industrial accident compensation for the rapidly increasing number of platform workers.

Minister of Employment and Labor Lee Jae-gap stated, "All working people are exposed to the risk of work-related accidents, and it is a crucial responsibility of the state to protect them appropriately."

He added, "We will gradually expand the scope of application so that industrial accident insurance can function as a practical social safety net for all working people, including teukgo and platform workers, who represent new forms of employment."

This content was produced with the assistance of AI translation services.