Living in Daejeon

IACI for Foreign Workers

What is the Industrial Accident Compensation Insurance?

  • The IACI is a compulsory insurance program where the state ensures the post-accidental livelihood of workers and their families. Under the IACI, and in conjunction with the Labor Standards Act, employers are required to take responsibilities for accidents incurred in the workplace by contributing towards compensations that are distributed to the victims through the insurance scheme. ※ Employers, not their employees, are responsible for the full amount of the contributions to IACA.
  • If an employer or their corporate entity cannot provide aid to their employees for work-related injuries or diseases, assistance through the IACI may be sought by filing an insurance claim form. This should be forwarded to a local branch for review. For more detailed information, workers may call 1588-0075.

Procedures

Should an industrial accident occur, a claim form, which is also available in hospitals, should be filed. Submit the completed form to the IACI branch of the worker or company's jurisdiction for review. The IACI will then determine if the applicant is entitled to any benefits, and the type and amount of entitlement. . The claimant will be notified of the decision once the review process is complete.

IACI Benefits

  • Medical Care Benefits
    • These benefits cover all medical care expenses, including, but not limited to, expenses for medical checkups, medical treatments, and surgeries. It also applies to industrial accidents that require 4 or more days of treatment.
  • Leave of Absence Benefits
    • During the period of medical care, the injured worker may receive compensation for wage loss of up to 70% of the average wage.
  • Injury/Disease Compensation Annuities
    • When an injury or a disease is not cured after two years, and is classified as a Grade 1, 2 or 3 incurable injury or disease, the worker is given the injury-disease compensation annuities in lieu of wage replacement benefits.
  • Disability Benefits
    • Workers with permanent disabilities are given disability benefits to make up for the potential wage loss, which is compensated according to the extent of their physical impairment. The benefits given are either a lump-sum pay or an annuity.
      ․ Disability Grades 1~3: annuity
      ․ Disability Grades 4~7: annuity or lump-sum pay (optional)
      ․ Disability Grades 8~14: lump-sum pay
      The lump sum payment may be requested when payment as an annuity is not feasible, for example when the recipient is an overseas worker and remaining in Korea is not possible.
  • Nursing Benefits
    • Nursing benefits are paid when workers must receive nursing care even after the completion of medical treatment because they are unable to function alone.
  • Survivors' Benefit and Funeral Expenses
    • In the event of death, the victim’s surviving family may receive the Survivors' Benefit (an amount equals to 1,300 days of average wage). When a worker dies from a work-related accident, a sum equivalent to that of 120 days of average wage is given to the surviving family for funeral expenses.