South KoreaWhat is the compensation standard for post-accident?
In South Korea, post-accident disability compensation is determined by the Industrial Accident Compensation Insurance Act based on the degree of disability (Grade 1–14), with lump-sum payments or lifetime pensions calculated using statutory formulas and average wage data.
What the Law Says
The Industrial Accident Compensation Insurance Act sets mandatory standards for compensating workers who suffer permanent disabilities due to work-related accidents. Compensation depends on the certified disability grade, the worker’s average wage, and statutory multipliers.
Disability is classified into 14 grades: Grade 1 is the most severe (e.g., total paralysis), Grade 14 the least (e.g., minor functional loss). Grades are assessed by designated medical examiners under Ministry of Employment and Labor guidelines.
Compensation takes two main forms: (1) a lump-sum payment for Grades 7–14, calculated as the worker’s average wage × statutory months (e.g., 12 months for Grade 14, up to 120 months for Grade 7); or (2) a monthly disability pension for Grades 1–6, paid for life at 60%–100% of the average wage, depending on grade.
The 'average wage' used is the worker’s average daily wage over the 3 months before the accident, multiplied by 365 days — but capped annually per regulations. As of 2024, the maximum monthly pension is KRW 4,500,000.
Statutory TextWhere a worker has sustained a disability due to an industrial accident, the insurer shall pay a disability compensation benefit in accordance with the degree of disability prescribed in Article 35-2.
— Industrial Accident Compensation Insurance Act, s. 35 — Disability Compensation Benefit
Statutory TextThe degree of disability shall be classified into fourteen grades… Grade 1 being the most serious and Grade 14 the least serious.
— Industrial Accident Compensation Insurance Act, s. 35-2 — Degree of Disability
Statutory TextA disability pension shall be paid monthly… at a rate of 60 percent of the average wage for Grade 6, increasing by 5 percentage points per grade up to 100 percent for Grade 1.
— Industrial Accident Compensation Insurance Act, s. 35-3 — Disability Pension
What to Do
Report the injury to your employer immediately and file an industrial accident report with the Korea Workers’ Compensation and Welfare Service (COMWELFARE).
Undergo disability assessment at a COMWELFARE-designated medical institution to receive an official disability grade.
Submit required documents (medical reports, wage statements, application form) to COMWELFARE within 2 years of diagnosis.
Choose between lump-sum payment (Grades 7–14) or lifelong pension (Grades 1–6); election must be made within 3 months of grade notification.
Appeal the grade decision within 90 days if disputed, via the Industrial Accident Dispute Resolution Committee.
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.