South KoreaWhat items are included in traffic accident damages?
Traffic accident damages in South Korea include medical expenses, lost wages, disability compensation, funeral costs, and consolation money for pain and suffering.
What the Law Says
South Korean law defines compensable damages for traffic accidents under the Automobile Management Act and related enforcement decrees. These include both economic and non-economic losses.
Compensable damages include all reasonable medical expenses incurred due to injury — such as hospitalization, surgery, medication, and rehabilitation — provided they are directly linked to the accident.
Lost wages are fully recoverable for the period the victim is unable to work, including future lost earnings if permanent disability results.
If the accident causes permanent disability, victims may claim disability compensation based on severity grade (1–14), calculated using statutory tables.
In fatal accidents, funeral expenses and consolation money (solatium) for bereaved family members are recoverable. Consolation money is capped at ₩30 million for death cases under standard guidelines.
The Automobile Management Act also mandates mandatory liability insurance covering up to ₩20 million per person for bodily injury, with higher optional coverage available.
Statutory TextDamages arising from automobile accidents shall include medical expenses, loss of earnings, disability compensation, funeral expenses, and consolation money.
— Automobile Management Act Enforcement Decree, Art. 69-2 — Compensation Standards for Automobile Accidents
Statutory TextConsolation money for death shall not exceed 30 million won in principle, unless exceptional circumstances apply.
— Automobile Management Act Enforcement Decree, Art. 69-2 § 3
What to Do
Report the accident to police and your insurer within 24 hours.
Keep all medical receipts, diagnosis letters, and wage statements.
Submit a formal damage claim to the at-fault driver’s insurer within 5 years.
If denied or underpaid, file for mediation at the Korea Traffic Accident Dispute Mediation Center.
Consider legal counsel if disability is involved or consolation money exceeds standard caps.
Sources
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JapanNot 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.