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🇰🇷 South Korea /Economy & Trade

South Korea mandates insurance for delivery riders from June 3

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified New plan
  • Delivery riders must now have mandatory insurance for paid transport services starting June 3.
  • Riders without this insurance cannot sign new contracts and existing ones will be terminated.
  • The government plans to increase discounts for insurance premiums through measures like installing license plates and safety training.

Starting June 3, delivery riders in South Korea are required to enroll in mandatory insurance for paid transport services. This new regulation, part of the revised Fair Distribution Service Industry Development Act, aims to enhance safety for both riders and the public.

Under the new law, delivery personnel who fail to secure the required insurance will be unable to enter into new contracts with delivery businesses. Existing contracts will also be terminated. The insurance policy mandates coverage for unlimited compensation for personal injury and up to 20 million won for property damage. Delivery companies are responsible for verifying riders' insurance status through a government system or by collecting documentation.

This revision of the enforcement decree and enforcement rules is a minimum institutional safety net that can provide peace of mind to both delivery workers and citizens.

— Park Jae-soonDirector of the Ministry of Land, Infrastructure and Transport's Transport Logistics Office, explaining the purpose of the new regulations.

To alleviate the financial burden of insurance premiums, the Ministry of Land, Infrastructure and Transport announced plans to increase existing discounts. These discounts are currently available for measures such as displaying full license plates, completing safety training, and installing a driving data recorder (DTG). The ministry aims to implement these enhanced discounts later this year.

Park Jae-soon, director of the ministry's Transport Logistics Office, emphasized the new regulations as a "minimum institutional safety net" for both delivery workers and citizens. He stated the government's commitment to fostering a delivery environment where riders can work safely and the public can move without worry.

We will do our best to create a delivery environment where delivery workers can work safely and citizens can walk with peace of mind.

— Park Jae-soonDirector of the Ministry of Land, Infrastructure and Transport's Transport Logistics Office, commenting on the government's commitment.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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