Legal information

Two claims are open to the family under industrial accident insurance (산재보험), both handled by the insurer, 근로복지공단 (referred to below as the agency): a survivors' benefit (유족급여) and funeral expenses (장례비). For a family living outside Korea, the survivors' benefit is paid as a lump sum (유족보상일시금), because the pension form is reserved for family who were living with the worker and, under the law, excludes non-Korean family residing abroad. A family outside Korea can file through someone they authorize in Korea, and the deadline is five years. Nothing depends on the worker's visa status at the time of death.

Who counts as "family" under this law?

The law defines survivors (유족) as the spouse, children, parents, grandchildren, grandparents and siblings of the person who died. A spouse includes a partner in a de facto marriage (사실혼), not only a registered one. A child who was unborn at the time of death counts as family from birth.

Two things decide which family members are paid and in what order:

• whether they shared a livelihood with the worker at the time of death (생계를 같이 하다), and
• the order set by the law: spouse, children, parents, grandchildren, grandparents, then siblings.

For a worker sending money home, the question of "shared livelihood" is judged by criteria in the Presidential Decree. Keep evidence of remittances and support, because it can affect the order and who is paid.

Which form applies to a family abroad, pension or lump sum?

For the pension, the family member must also fit a category: a spouse; parents or grandparents aged 60 or over; children or grandchildren under 25; siblings under 19 or 60 and over; or a family member with a recognized disability. A pension-receiving spouse loses the pension on remarriage, including a de facto remarriage, and a non-Korean pension recipient loses it by leaving Korea to live abroad. When a pension ends for one of those reasons and nobody else qualifies, the agency tops up what was paid to 1,300 days of average wage, in a single payment, if the total was below that.

The lump sum itself is a set number of days of the worker's average wage (평균임금); the number is fixed in the Act's own benefit table. If two or more family members are in the same rank, it is split equally. If the worker left a will naming who should receive the benefit, the will decides.

What are the funeral expenses?

Funeral expenses are 120 days of the worker's average wage, paid to the family member who held the funeral. If a non-family person held it because there was no family available, that person is paid the actual cost up to the same ceiling. The Ministry of Employment and Labor publishes a ceiling and a floor each year, and the figure is adjusted to stay within them.

If the death is presumed to be work-related, the family can ask for the minimum amount in advance, before the funeral. That advance is later deducted from the final figure. It can help a family that needs to pay for repatriation of the body quickly; whether repatriation costs themselves are covered is a separate question, and we treat it as not guaranteed.

How does a family abroad actually claim?

In practice the claim runs through someone in Korea.

1. Appoint one representative in Korea by signing a written authorization (위임장). This can be a lawyer, a relative already in Korea, or someone the family trusts. Expect the agency and banks to want that authorization certified; the usual route is the Korean consulate nearest to you, so confirm the form before signing. 2. Prove the relationship. Marriage certificate, birth certificates, a family register or equivalent from your country. Documents not in Korean generally need a Korean translation, and the agency may require an apostille or consular legalization. Ask the agency or your representative which form is accepted before you send originals. 3. Prove the death and its cause. Death certificate, the hospital record, the police or accident report. The employer must report the accident, but the family can claim even if the employer has not. 4. Give bank details. Payment goes to an account in the recipient's name. Payment to a foreign account is possible in practice, but ask how it will be sent and what fees apply. 5. Claim any benefits the worker had not yet received. If the worker had an open medical or wage replacement claim, the family can claim the unpaid part in the same legal order.

After the agency issues its decision, it has 14 days to pay.

Is the employer's own liability separate?

Yes. Insurance benefits do not cover everything, for example pain and suffering or the full lost income of the worker. If the employer or a third party was at fault, the family can bring a civil claim for damages (손해배상) in addition to the insurance benefits, with the insurance amounts offset where they overlap. Be careful with any settlement (합의서) the employer offers early: a signed waiver can close that civil claim. Read it with someone independent before signing.

Next step

Gather the relationship documents and the accident records first, then appoint one representative so that the agency has a single contact in Korea. A lawyer can act as that representative, file the insurance claim, and assess whether a separate damages claim against the employer is worth pursuing. Our consultations are paid; contact us and a staff member will call to explain the fee.

법무법인 대한중앙
1533-7377

Rules applied

Industrial Accident Compensation Insurance Act (산업재해보상보험법) Article 5 (definition of survivors, including a de facto spouse), Article 62 (survivors' benefit; pension or lump sum; lump sum when no one qualifies for the pension; half lump sum option; shortfall below 1,300 days paid as lump sum), Article 63 (pension eligibility: shared livelihood, exclusion of non-Korean family living abroad, age categories, unborn child, order), Article 64 (loss of pension eligibility: remarriage, leaving Korea to live abroad), Article 65 (order of family for the lump sum, equal split within a rank, will), Article 71 (funeral expenses: 120 days of average wage, ceiling and floor by notice, advance of the minimum), Article 81 (unpaid benefits claimed by family), Article 82 (payment within 14 days of the decision, named account), Article 112 (5-year limitation for survivors' benefit and funeral expenses).

This is general information, not legal advice. Every case is different.