South KoreaThe insurance company refuses to pay.
If your insurance company refuses to pay a valid claim in South Korea, you may file a complaint with the Financial Services Commission (FSC) or sue in court within 3 years of knowing the breach.
What the Law Says
South Korean law sets clear obligations for insurers and rights for policyholders when claims are denied.
Under the Insurance Act, an insurer must pay a valid insurance claim without unjust delay. If the insurer refuses payment without reasonable grounds, it may be liable for breach of contract and additional damages.
The Civil Act governs general contractual obligations, including insurance contracts. Article 652 states that 'a party who fails to perform his obligation shall be liable for damages caused thereby.'
The Insurance Act specifically addresses claim handling: Article 740 requires insurers to 'promptly examine the facts and notify the insured of the result of the examination' and prohibits 'unjust refusal or delay in payment.'
Statutory Texta party who fails to perform his obligation shall be liable for damages caused thereby.
— Civil Act, s. 652 — Liability for non-performance
Statutory Textpromptly examine the facts and notify the insured of the result of the examination
— Insurance Act, s. 740 — Examination and notification of claims
Statutory Textunjust refusal or delay in payment
— Insurance Act, s. 740 — Examination and notification of claims
What to Do
Review your insurance policy and gather evidence proving the claim is covered and properly filed.
Submit a written complaint to the insurer, citing Article 740 of the Insurance Act.
If unresolved within 15 days, file a formal complaint with the Financial Services Commission (FSC) via its Consumer Protection Center.
If the FSC does not resolve the issue, file a civil lawsuit within 3 years from when you knew (or should have known) of the refusal — per Article 652 of the Civil Act.
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.