'Delivery Workers' Safety Blind Spot'... Rider Industrial Accident Claims Triple in 3 Years

Last Year Payment of 27.6 Billion Won... Abuse of Industrial Accident Exclusion System in Small and Medium Delivery App Platforms

On August 26, last year, when the spread of COVID-19 was continuing, a delivery worker was seen busily moving along Mugyo-ro in Seoul. Due to concerns about COVID-19 infection, the demand for food delivery services surged, keeping delivery workers busy. Photo by Moon Honam munonoam@

[Sejong=Asia Economy Reporter Moon Chaeseok] Over the past three years, the number of industrial accident insurance claims filed by delivery workers (riders) has more than tripled. As the platform business grows, the number of delivery workers is also increasing, but concerns are being raised about whether safety is being neglected.

According to the annual delivery worker industrial accident insurance claim and benefit payment status data submitted by the Ministry of Employment and Labor to Rep. Kim Woong of the People Power Party on the 20th, the number of industrial accident insurance claims rose sharply from 618 cases in 2018 to 2,275 cases last year. This year, the increase has been even steeper, with 1,121 claims filed in the first quarter alone, reaching nearly half of last year's total. The number of approved cases also increased from 597 in 2018 to 2,070 last year, with 1,060 approvals recorded from January to March this year.

The amount paid annually also increased from 8.478 billion KRW in 2018 to 27.602 billion KRW last year. From January to March this year, 11.627 billion KRW was paid to 2,272 recipients.

The rise in industrial accident insurance claims among delivery workers is interpreted as meaning that as the workforce grows, the probability of exposure to safety accidents also increases. A Ministry of Employment and Labor official explained, "The increase in the number of platform market workers appears to have led to more industrial accident claims," adding, "Especially last year and this year, non-face-to-face delivery consumption surged."

Industry insiders say the actual number of workers subject to industrial accident insurance coverage is likely larger than the statistics indicate. This is because there are frequent cases where employers ask delivery workers to opt out of industrial accident insurance coverage due to concerns about disadvantages. Small and medium-sized 'delivery app platforms,' unlike large 'order app platform companies' such as Woowa Brothers (Baedal Minjok), Yogiyo, and Coupang Eats, sign contracts between branch managers (employers) of branch offices and delivery workers rather than with the headquarters. When employers request riders to exclude industrial accident insurance coverage, it is not easy for them to refuse.

Hong Chang-ui, Secretary General of the Delivery Service Branch of the Service General Labor Union, said, "In small and medium delivery app platforms excluding large companies like Woowa Brothers, cases of abusing industrial accident insurance exclusion requests are still common," adding, "Eradicating this is necessary to properly protect delivery workers injured on the job."

To support delivery workers who find it difficult to enroll in industrial accident insurance due to cost burdens, the industry is also considering establishing a mutual aid association by pooling funds. However, if the platform industry supports this through its own funds, there is a high possibility that the cost will be passed on to delivery fees, which could also affect consumers.

An industry official said, "It is true that there are concerns that delivery fees may rise if delivery agencies bear the cost of establishing a mutual aid association without government support," adding, "From July, some platform companies where branch managers determine delivery fees may adjust delivery fees citing increased costs such as enrolling special-type workers in industrial accident insurance."

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