South KoreaThe travel agency went bankrupt. Can travel insurance.
Yes, travel insurance may cover you if your travel agency in South Korea went bankrupt — but only if your policy includes 'bankruptcy coverage' (also called 'supplier insolvency coverage'), which is optional and not automatic.
What the Law Says
South Korean law does not require travel insurance to cover travel agency bankruptcy. Coverage depends entirely on the specific terms of your insurance contract, governed by the Insurance Business Act and the Standard Terms for Travel Insurance issued by the Financial Services Commission (FSC).
Travel insurance in South Korea is regulated under the Insurance Business Act and its enforcement decree. However, bankruptcy protection for travelers is not mandated by law — it is an optional add-on clause.
The FSC’s Standard Terms for Travel Insurance (2022 Revision) state that 'coverage for losses arising from the insolvency or bankruptcy of a travel service provider shall be provided only when explicitly agreed upon in the insurance contract.'
If included, such coverage typically requires the insured to file a claim within 30 days of learning about the bankruptcy, and the maximum payout per claim is capped at ₩5 million unless otherwise specified in the policy.
Statutory TextCoverage for losses arising from the insolvency or bankruptcy of a travel service provider shall be provided only when explicitly agreed upon in the insurance contract.
— Standard Terms for Travel Insurance (FSC Notice No. 2022-17), Art. 12 — Bankruptcy Coverage Clause
Statutory TextThe insured must submit a written claim within thirty (30) days from the date on which the insured becomes aware of the bankruptcy event.
— Standard Terms for Travel Insurance (FSC Notice No. 2022-17), Art. 12(3)
What to Do
Check your policy document for 'bankruptcy', 'insolvency', or 'supplier default' coverage — it must be explicitly listed.
Gather proof: official bankruptcy notice from the court or the Korea Fair Trade Commission (KFTC), booking receipts, and payment records.
Submit a written claim to your insurer within 30 days of learning about the bankruptcy.
If denied unfairly, file a complaint with the Financial Services Consumer Protection Division (https://www.fss.or.kr).
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.