Seoul Overhauls Ground Subsidence Compensation System... Strengthens Fatality Compensation

Improvements Made Following Proposal by the Seoul Citizens' Audit Ombudsman Committee
"Ground Subsidence" Added as Coverage Item in Citizen Safety Insurance
Recommendation to Strengthen Compensation for Fatalities in Public Liability Insurance

From now on, compensation for casualties resulting from ground subsidence accidents will be expanded. "Ground subsidence" will be newly added as a coverage item in the citizen safety insurance policies purchased by metropolitan local governments, and a new special clause will be introduced to allow compensation for fatalities.

According to the Seoul Metropolitan Government on April 23, the Citizens' Audit Ombudsman Committee recently analyzed issues in the compensation and insurance system related to ground subsidence accidents and proposed necessary improvements to the Anti-Corruption and Civil Rights Commission. As a result, the "Compensation and Insurance System for Ground Subsidence Fatalities" has been improved.

The scene of the large sinkhole that occurred last year on the road near Daemyeong Elementary School in Gangdong-gu. Photo by Yonhap News

The current compensation and insurance system for ground subsidence accidents has structural limitations that make it difficult to provide adequate compensation in the event of multiple fatalities. Moreover, as the relevant system is operated as a public liability insurance by the Korea Local Finance Association, a government-affiliated institution, it was not easy for the Seoul Metropolitan Government to make independent improvements.

In response, the city communicated the issues and proposed solutions to the Anti-Corruption and Civil Rights Commission, emphasizing the need for system reform. Subsequently, the commission conducted fact-finding surveys and gathered opinions, then recommended improvements to the "Compensation and Insurance System for Ground Subsidence (Sinkhole) Fatalities" to metropolitan local governments and the Korea Local Finance Association.

The commission's fact-finding survey revealed that over 40% of sewage pipes nationwide have been in use for more than 30 years, indicating severe aging. On average, there are about 150 ground subsidence accidents each year, and the scale of damage is increasing, as seen in the major accident in Myeongil-dong, Gangdong District, Seoul.

However, the current public insurance system makes it difficult to provide adequate compensation when there are multiple fatalities. If "ground subsidence" is not included as a covered item in the citizen safety insurance, such incidents may be excluded from compensation. Moreover, the public liability insurance operates under a structure where compensation is divided, regardless of whether the damages are to persons or property, within the coverage limit. As a result, in cases involving multiple casualties, the compensation amount per person is significantly reduced.

Therefore, the commission recommended adding "death caused by ground subsidence" as a new coverage item to the citizen safety insurance policies held by metropolitan local governments. In addition, it advised the Korea Local Finance Association to introduce a new special clause in the public liability insurance to enable compensation for fatalities caused by ground subsidence accidents, or to increase the compensation limit of the current road liability special clause and separate compensation for personal and property damages.

The Seoul Citizens' Audit Ombudsman Committee is promoting institutional improvements as a key task to protect citizens' rights and enhance the effectiveness of related systems. With the launch of its fourth term, the committee has established a systematic action plan and built a foundation for strengthening its rights protection functions. It is also operating regular and ad-hoc consultative bodies in cooperation with the Anti-Corruption and Civil Rights Commission.

Cho Deokhyun, Chairperson of the Seoul Citizens' Audit Ombudsman Committee, stated, "We have identified the limitation that the current compensation system cannot provide sufficient compensation in the event of multiple fatalities caused by ground subsidence accidents," and added, "Based on this ongoing collaboration, we plan to continue improving unreasonable systems in the future."

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