Mandatory Liability Insurance for Outdoor Advertising Operators... Up to 5 Million Won Fine for Violations

Amendment to the Enforcement Decree of the Outdoor Advertising Act Including Mandatory Liability Insurance Enrollment Approved at Cabinet Meeting

[Image source=Yonhap News]

[Asia Economy Reporter Lim Cheol-young] From now on, outdoor advertising operators will be required to subscribe to liability insurance so that they can promptly and effectively compensate citizens who suffer damages from outdoor advertising accidents. Violations of this requirement will result in fines of up to 5 million KRW.

On the 27th, the Ministry of the Interior and Safety announced that the partial amendment to the Enforcement Decree of the Act on the Management of Outdoor Advertisements and the Promotion of the Outdoor Advertising Industry, which includes these provisions, has passed the Cabinet meeting.

This amendment is a follow-up measure to the legal revision promulgated in June last year and sets forth the types of liability insurance for outdoor advertising damages, the scope of outdoor advertisements subject to subscription, compensation limits of liability insurance, and criteria for imposing fines.

Outdoor advertising operators must subscribe to either the ‘liability insurance for damages caused by outdoor advertisements’ or insurance containing equivalent coverage. The insurance subscription target includes outdoor advertisements and posting facilities produced, displayed, or installed by the outdoor advertising operator, including mobile advertisements with accident risks such as signboards and banners. Posters and leaflets are excluded.

The compensation limit of the liability insurance is at least the amount specified in the Enforcement Decree of the Automobile Damage Compensation Guarantee Act per victim in cases of death or injury, and at least 30 million KRW per accident for property damage. If an outdoor advertising operator violates the insurance subscription obligation, a fine of up to 5 million KRW will be imposed depending on the violation period.

The amendment also includes provisions such as extending the pilot period for taxi roof light electronic advertisements, easing regulations on self-related advertisements on commercial vehicles, and allowing change applications when extending the display period of advertisements. The pilot project for taxi roof light electronic advertisements currently operating in Seoul, Daejeon, and Incheon will have its pilot period extended by three years to thoroughly verify safety, advertising effectiveness, and resident favorability.

Additionally, displaying self-related advertisements on commercial vehicles, which previously required permission, will be simplified to a notification system. However, advertisements for other companies must still be permitted and displayed as before.

Furthermore, when applying to extend the display period of advertisements, applicants will be allowed to request changes to the advertisement’s specifications, materials, content, display location, or place simultaneously. This is expected to resolve inconveniences such as having to undergo safety inspections twice within a short period and the economic burden of paying duplicate fees.

Park Seong-ho, Director of Local Autonomy and Decentralization at the Ministry of the Interior and Safety, stated, “Through this amendment to the enforcement decree, we have protected citizens from accidents caused by outdoor advertisements and improved related regulations to suit the current situation. We will continue to strengthen citizen protection and actively eliminate unnecessary regulations.”

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