Key Points
- A person who operates a motor vehicle for their own benefit is liable for damages if that operation kills or injures another person (Article 3 of the Compulsory Motor Vehicle Liability Security Act).
- Damages fall into three main parts: positive damages such as medical costs, future medical costs and nursing costs; passive damages, which are lost income; and compensation for non-economic damages (compensation for emotional distress).
- Because insurer policy standards and court judgment standards differ, victims with lasting disability or high income often receive more through a lawsuit.
- The claim expires 3 years from the date you learned of the damage and the person responsible, or 10 years from the date of the accident (Article 766 of the Civil Act).
What damages can you claim?
| Type | What is included | What to prepare |
|---|---|---|
| Positive damages | Current and future medical costs, nursing costs, assistive devices, transportation for outpatient visits | Obtain a doctor's opinion on future surgery and treatment plans |
| Passive damages (lost income) | Loss from being unable to work during treatment, and future income lost in proportion to reduced working capacity due to lasting disability | Proof of income, application for an assessment of the rate of lost working capacity |
| Compensation for non-economic damages | Monetary compensation for emotional distress caused by the accident | The degree of injury and lasting disability, whether the at-fault driver was drunk or fled |
| Property damage | Repair costs, loss in vehicle value, rental car costs | The conditions under which loss in value can be recognized |
One step in the fault ratio can mean tens of millions of won
If the victim was also at fault, that proportion is deducted from the damages (comparative fault). Insurers set the ratio using the "fault ratio standards," but in a lawsuit the court makes its own judgment based on the whole course of the accident. Rebutting with video records, signal systems and road layout can change the amount by anywhere from several million won to tens of millions of won.
What to check before settling with the insurer
- Whether treatment is finishedIf you settle in the middle of treatment, it becomes hard to claim later costs. A lasting-disability diagnosis should be obtained after the symptoms have stabilized.
- Income recordsLost income is calculated properly only with records of actual income, such as employment income, business income, or daily wages.
- How lasting disability is assessedInsurer standards and court assessment standards (rate of lost working capacity) differ, and this is the item where the gap in amounts is largest.
- The status of the at-fault driver's criminal caseIf the other driver faces criminal punishment, criminal settlement money is negotiated separately from civil compensation. Check whether the agreement contains a clause deducting criminal settlement money from the damages.
If the at-fault driver fled or had no insurance
If there is no one to pay because of a hit-and-run or an uninsured vehicle, you can claim compensation up to a certain limit through the government-run Automobile Accident Compensation Guarantee Program. You also have the right to claim insurance money directly from the at-fault vehicle's insurer (the right of direct claim).
How to take part in the at-fault driver's criminal trial
If the other driver has been brought to trial for drunk driving (officially “driving while intoxicated”), fleeing, or a serious fault, you as the complainant or victim can testify in court or submit a written opinion. Making clear whether you want severe punishment or are willing to settle can also put you in a stronger position in criminal settlement negotiations.
Frequently Asked Questions
How do I check whether the insurer's settlement offer is fair?
My fault ratio came out at 20%, and I find it hard to accept.
The at-fault driver's side contacted me to propose a criminal settlement.
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Read more →Written on the basis of Korean statutes in force (National Law Information Center, Ministry of Government Legislation) and court precedents as of October 20, 2026. Results may differ with amendments to the law or the facts of each case. This page is general information, not legal advice.
Written and reviewed by Attorney Dongwoo Shin — Ph.D. in Law; certified criminal law specialist and certified divorce law specialist registered with the Korean Bar Association. He handles each case personally from consultation to judgment. About the attorney →
Last updated October 20, 2026
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