Drive an uninsured car in Korea for more than ten days and the daily fine starts running. Drive it on the road and the penalty jumps to a criminal charge. Every vehicle owner in Korea, foreign resident or not, must carry compulsory liability insurance (책임보험) at all times.
Compulsory insurance (책임보험): what the law requires
Every vehicle owner in Korea must carry compulsory liability insurance (책임보험, also called 의무보험) under 자동차손해배상보장법 (the Motor Vehicle Damage Compensation Guarantee Act), Article 5. This applies from the moment you own a registered vehicle, whether you are driving it or not.
The required coverage is set by the enforcement decree (시행령), last revised effective January 1, 2025. Verify current figures at easylaw.go.kr or law.go.kr before you buy.
What compulsory insurance covers
Death (사망): Up to ₩150,000,000 per person within the actual damage amount. If the actual damage is less than ₩20,000,000, the payout floor is ₩20,000,000.
Injury (상해): The enforcement decree classifies injuries into 14 grades. Grade 1 is the most severe. The limits per grade, from the enforcement decree 별표 1, are:
| Grade | Limit | Representative injuries |
|---|---|---|
| 1 | ₩30,000,000 | Paralysis from spinal damage |
| 2 | ₩15,000,000 | Internal organ removal surgery |
| 3 | ₩12,000,000 | Incomplete paraplegia |
| 4 | ₩10,000,000 | Corneal transplant surgery |
| 5 | ₩9,000,000 | Hip dislocation surgery |
| 6 | ₩7,000,000 | Knee dislocation, no surgery |
| 7 | ₩5,000,000 | Clavicle fracture |
| 8 | ₩3,000,000 | Shoulder dislocation, no surgery |
| 9 | ₩2,400,000 | Herniated disc, sternal fracture |
| 10 | ₩2,000,000 | Facial laceration of at least 3cm |
| 11 | ₩1,600,000 | Concussion, nasal fracture |
| 12 | ₩1,200,000 | Spinal strain, laceration requiring sutures |
| 13 | ₩800,000 | Eardrum rupture, dental work on 2 to 3 teeth |
| 14 | ₩500,000 | Simple contusion, joint sprain |
Confirm the grade 14 figure against the official 별표 1 text at law.go.kr before relying on it, as grades are revised periodically.
Property damage (대물배상): Up to ₩20,000,000 per accident for damage to another person's vehicle or property.
Who must have it: Every 자동차보유자 (vehicle owner or holder of usage rights), including owners of motorcycles and scooters (including those under 50cc).
Penalties for non-compliance
Administrative fine (과태료) for a standard non-business passenger car:
| Uninsured period | Fine |
|---|---|
| Up to 10 days | ₩15,000 flat (₩10,000 for personal injury + ₩5,000 for property) |
| Each additional day after 10 | ₩6,000 per day (₩4,000 + ₩2,000) |
| Maximum | ₩900,000 |
Higher maximums apply to commercial vehicles (₩1,300,000 combined: ₩1,000,000 personal injury + ₩300,000 property) and motorcycles. Verify the current penalty table at easylaw.go.kr.
Criminal penalty: If you drive a vehicle you know is uninsured, Article 46(3), item 2 of the law applies: up to one year imprisonment or a fine of up to ₩10,000,000. Authorities may also seize your license plates.
At the registration office: Your insurance enrollment certificate (의무보험가입증명서) is required before the registration office will process an ownership transfer. You cannot complete the transfer without it.
The six coverage types: compulsory and optional
Korean car insurance has six standard coverage components. The first two form the compulsory minimum. The other four are optional.
| Coverage | Korean | Required? | What it pays |
|---|---|---|---|
| Third-party personal injury I | 대인배상 I | Yes | Third-party death and injury up to statutory limits |
| Property damage liability | 대물배상 | Yes (min ₩20M) | Third-party property damage up to your policy limit |
| Third-party personal injury II | 대인배상 II | No | Third-party death/injury compensation above the 대인배상 I caps, including lost wages (휴업손해) and nursing costs |
| Higher property damage | 대물배상 (above ₩20M) | No | Most drivers set this at ₩100,000,000 or more, given the cost of premium vehicles |
| Own-body injury | 자기신체사고 / 자동차상해 | No | Your own death or injury in an accident |
| Own-vehicle damage | 자기차량손해 | No | Damage to your own vehicle from collision, fire, theft, or natural disaster |
| Uninsured motorist injury | 무보험자동차상해 | No | Your own death or injury when hit by an uninsured or unknown driver |
On property damage limits: The compulsory minimum of ₩20,000,000 can be consumed quickly in a collision with a high-value vehicle. The incremental premium for raising the 대물 limit is small relative to the protection it provides.
On own-vehicle coverage: If you financed your car, the lender typically requires 자기차량손해. Without it, you bear the full repair cost yourself after a collision.
Enrolling as a foreign resident
Any foreign resident with an Alien Registration Card (ARC, 외국인등록증) can enroll in Korean car insurance using their foreign registration number (외국인등록번호). No visa category is excluded. Korean-heritage residents on an F-4 visa who hold a domestic residence certificate (거소증) can use the registration number on that card in the same way.
What you need to enroll
- Foreign registration number from your ARC or 거소증
- Korean driver's license (운전면허증): required to list you as a named driver
- Vehicle registration certificate (자동차 등록증)
- Korean bank account or credit card for payment
Online vs. phone enrollment
Most major insurers offer online direct (다이렉트) enrollment if you have an ARC number, a Korean phone number for SMS verification, and a Korean payment method. Some foreign residents find certain online identity-verification steps difficult and prefer to enroll via the insurer's call center (콜센터), where translation assistance may be available from larger insurers. In-person enrollment through an insurance agent (설계사) is also an option.
If the 보험다모아 comparison portal does not accept your foreign registration number for the full comparison flow, contact your chosen insurer directly for a quote.
Overseas driving history credit
When you have no Korean insurance history, you start at entry grade 11N in the no-claim discount-surcharge system. This carries a baseline premium loading.
If you held car insurance abroad, Korean insurers recognize overseas history as experience credit (경력 인정). The Financial Services Commission confirmed this in its 2024 reform press release. The required document is a foreign insurance certificate (해외 보험가입증명서) from your previous insurer, showing the policy period and claims record.
Contact your previous insurer directly to request this certificate. If the policy has lapsed, you may need to contact the insurer by phone or email from Korea. The premium reduction varies by insurer and driving profile. Do not expect a specific figure: ask each insurer how they apply overseas experience credit before you buy.
How premiums are calculated
The no-claim discount-surcharge system (할인할증등급제도)
Korean car insurance uses a 29-grade bonus-malus system maintained by the Korea Insurance Development Institute (보험개발원, kidi.or.kr). Grade 11N is the entry point for new policyholders.
- One claim-free year: move up one grade (lower premium at renewal)
- One claim or accident: your grade drops by the accident's point score (one grade per point, from 0.5 up to 4 points by severity), raising your premium
2024 reform (effective August 1, 2024): Drivers who had a gap of three or more years in their Korean insurance and were previously at grades 15 through 29 now receive a three-grade surcharge from their previous grade at re-entry, rather than a reset to grade 11N. This benefits foreign residents who arrive with clean overseas driving records and a period of no Korean coverage.
Other premium factors
Individual insurers apply their own pricing models on top of the 보험개발원 reference rates. Factors that affect your premium:
- Driver age: younger and older drivers typically pay more
- Named driver scope: "named drivers only" costs less than "any driver"
- Vehicle type and model group: higher-value or higher-displacement vehicles cost more to insure for own-vehicle damage
- Annual mileage: low-mileage discounts can be substantial (see below)
- Vehicle age
- Coverage limits and deductibles chosen
- Special riders (특약): dashcam, telematics, and other optional add-ons
Do not rely on any specific won-amount figure for total annual premiums. The range is wide and depends on your full profile. Use 보험다모아 (e-insmarket.or.kr) to compare actual quotes across insurers for your situation.
Available discounts
Mileage discount (마일리지 할인): The single largest available discount for many drivers. You log annual kilometers via an approved OBD device or telematics app. The less you drive, the greater the discount. Rates vary by insurer. Check current rates with each insurer before you commit.
Dashcam discount (블랙박스 할인): A discount for fitting a GPS-equipped dashcam. Rates vary by insurer and device model.
Safe-driving score discount: Some insurers link premiums to telematics data such as a Tmap driving score.
No-claim discount (무사고할인): Built into the grade system. Each claim-free year moves you one grade toward a lower premium.
Comparing and buying: 다이렉트 vs. agents
Direct (다이렉트) online insurers
Buying direct through an insurer's own website removes agent commission. Major direct channels:
- Samsung Fire (삼성화재 다이렉트)
- Hyundai Marine and Fire (현대해상 다이렉트)
- DB Insurance (DB손해보험 다이렉트)
- KB Insurance (KB손해보험 다이렉트)
- Carrot Insurance (캐롯손해보험): per-kilometer telematics model
- AXA Direct (AXA다이렉트)
These are the dominant market participants; this list is not a recommendation of any specific insurer.
Agent channel (설계사)
An insurance agent handles paperwork in person. Useful if you face language barriers with online authentication flows or have a complex situation such as a specialty vehicle or unusual driver history. Premiums are typically higher due to agent commission.
The official comparison portal: 보험다모아
보험다모아 at e-insmarket.or.kr lets you compare premiums and coverage across member insurers side by side, then links to each insurer's enrollment page. The portal is jointly operated by the Korea Life Insurance Association (생명보험협회) and the Korea Non-Life Insurance Association (손해보험협회) under Financial Services Commission oversight.
What to do after an accident
In the first 30 minutes
- Check for injuries. Call 119 (ambulance and fire) if anyone is hurt.
- Move vehicles to the roadside and set out warning triangles, if it is safe to do so.
- Call 112 (police) to file an accident report. This is required for accidents involving injury. For property-damage-only accidents, check with your insurer whether a police report is required in your specific situation.
- Call your insurer's 24-hour accident hotline. Do not admit fault. Do not agree to any compensation payment with the other driver before speaking to your insurer.
- Document the scene: photographs of vehicle positions, damage to both cars, road conditions, and both license plates.
Major insurer 24-hour hotlines
| Insurer | Hotline |
|---|---|
| 삼성화재 | 1588-5114 |
| 현대해상 | 1588-5656 |
| DB손해보험 | 1588-0100 |
| KB손해보험 | 1544-0114 |
| 롯데손해보험 | 1588-3344 |
Your insurer's number is on your policy certificate. Save it in your phone before you need it.
After the initial call
Your insurer dispatches an assessor (손해사정사) who inspects damage, reviews police and medical records, and determines compensation. The assessor assigns a fault ratio (과실비율) in proportion to each driver's share of responsibility. This ratio affects how much each insurer pays.
Disputing a fault ratio
If you disagree with the fault ratio assigned, the Korea Non-Life Insurance Association (손해보험협회) operates a fault-ratio consultation service at accident.knia.or.kr. You can also escalate to the Financial Supervisory Service (금융감독원) for consumer dispute mediation, or pursue a civil court claim as a last resort.
If the other driver is uninsured
If the at-fault driver has no insurance, the government compensation program (정부 보장 사업) covers victims up to compulsory insurance limits. This is administered by 자동차손해배상진흥원 (TACSS) at tacss.or.kr. As a victim, you can also request an advance payment (가불금) of up to 50% of your claim before full settlement.
FAQ
Can a foreign resident buy car insurance in Korea?
Yes. Any foreign resident with an Alien Registration Card (ARC, 외국인등록증) can buy Korean car insurance using their foreign registration number. No visa category is excluded. Korean-heritage residents holding a domestic residence certificate (거소증) can use the registration number on that document in the same way.
What is the minimum car insurance required by law in Korea?
Every vehicle owner must carry compulsory liability insurance (책임보험) under 자동차손해배상보장법 Article 5. This covers third-party death up to ₩150,000,000 per person (floor ₩20,000,000) and property damage up to ₩20,000,000 per accident, under the enforcement decree effective January 1, 2025. Verify current limits at law.go.kr or easylaw.go.kr before purchasing.
What happens if I drive without insurance in Korea?
You face two separate consequences. First, an administrative fine (과태료): ₩15,000 flat for the first ten days your vehicle is uninsured, then ₩6,000 per day after that, up to a maximum of ₩900,000. Second, if you drive the uninsured vehicle, criminal penalties apply under 자동차손해배상보장법 Article 46: up to one year imprisonment or a fine of up to ₩10,000,000. Authorities may also seize your license plates.
What grade do I start at in the Korean no-claim discount system?
New policyholders with no Korean insurance history start at grade 11N in the no-claim discount-surcharge system (할인할증등급제도). Each year without a claim moves you up one grade. A claim lowers your grade by its accident point score, one grade per point, from 0.5 up to 4 points depending on severity. Under a reform effective August 1, 2024, drivers returning after a gap of three or more years receive a three-grade surcharge from their previous grade rather than a full reset to grade 11N.
Can I get credit for my overseas driving history?
Yes. Korean insurers recognize overseas car insurance history as experience credit. You need a foreign insurance certificate (해외 보험가입증명서) from your previous insurer showing your policy period and claims record. Contact your previous insurer to request this document. The premium reduction varies by insurer and driver profile: ask each insurer directly how they apply overseas experience credit.
Where can I compare car insurance prices across insurers?
Use 보험다모아 at e-insmarket.or.kr. This is the official comparison portal run jointly by the Korea Life Insurance Association and the Korea Non-Life Insurance Association, under Financial Services Commission oversight. If the portal does not accept a foreign registration number for the full comparison flow, contact your chosen insurer directly for a quote.
What should I do immediately after a car accident in Korea?
Call 119 if anyone is injured. Move vehicles to the roadside if safe. Call 112 for a police report (required for injury accidents). Call your insurer's 24-hour hotline as soon as possible. Do not admit fault or agree to any compensation payment with the other driver before speaking with your insurer. Photograph vehicle positions, damage, road conditions, and license plates.
How does fault work after a car accident in Korea?
Korea uses a comparative fault system. A fault ratio (과실비율) is assigned to each driver after an accident. Each party's insurer pays damages proportional to the other party's fault share. If you dispute the ratio, use the Korea Non-Life Insurance Association's consultation service at accident.knia.or.kr or escalate to the Financial Supervisory Service.