South KoreaHow is workers' comp handled when caused by a third party?
In South Korea, if a work-related injury is caused by a third party, the injured worker can claim workers’ compensation from the employer or the Workers’ Compensation Insurance system and may also sue the third party separately — but any compensation recovered from the third party must be offset against the workers’ comp benefits received.
What the Law Says
South Korean law allows dual recovery for workplace injuries caused by third parties, but imposes strict offset rules to prevent double compensation. The Industrial Accident Compensation Insurance Act governs both the workers’ compensation system and how third-party recoveries interact with it.
Under the Industrial Accident Compensation Insurance Act, workers injured due to a third party’s negligence (e.g., a delivery driver hit by a negligent motorist while on duty) are entitled to full workers’ compensation benefits regardless of the third party’s involvement.
However, Section 43(1) requires that any amount the worker recovers from the third party — whether through settlement or court judgment — must be deducted from the workers’ compensation benefits already paid or payable. This prevents unjust enrichment and ensures the insurance system is not overburdened.
The employer or the Korea Workers’ Compensation and Welfare Service (KCOMWELFARE) may step into the worker’s shoes to pursue the third party directly, but only after paying benefits and only up to the amount paid. This is known as subrogation, and it is mandatory under Section 43(2).
Workers must report third-party incidents to their employer within 30 days, and employers must file reports with KCOMWELFARE without delay. Failure to do so may delay benefit processing but does not forfeit rights.
Statutory TextIf a worker receives compensation from a third party for an industrial accident, the amount so received shall be deducted from the compensation payable under this Act.
— Industrial Accident Compensation Insurance Act, s. 43(1) — Offset of Third-Party Compensation
Statutory TextThe insurer may exercise the right of subrogation against the third party to the extent of the compensation paid to the worker.
— Industrial Accident Compensation Insurance Act, s. 43(2) — Subrogation Right
What to Do
Report the third-party incident to your employer immediately — within 30 days at the latest.
File a workers’ compensation claim with KCOMWELFARE through your employer or directly via the online portal.
If pursuing a civil claim against the third party, notify KCOMWELFARE in writing before settlement or judgment.
Cooperate with KCOMWELFARE if they exercise subrogation rights — you may be required to assign part of your recovery.
Keep all documentation: police reports, medical records, settlement agreements, and payment receipts.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.