Half of Domestic Traditional Markets Lack Fire Insurance... Limited Compensation Options in Case of Fire

On the 21st, just before the Chuseok peak season, firefighters who extinguished the fire at the Cheongnyangni Fruit and Vegetable Market in Seoul are inspecting the interior.
[Image source=Yonhap News]

[Asia Economy Reporter Kim Young-eun] On the 21st, a fire broke out at the Cheongnyangni Traditional Market in Dongdaemun-gu, Seoul, and it was revealed that nearly half of the traditional markets in Korea are not covered by fire insurance.

According to data submitted on the 22nd by the Small Enterprise and Market Service (SEMAS) to Koo Ja-geun, a member of the National Assembly’s Industry, Trade, and Small and Medium Venture Business Committee from the People Power Party, the fire insurance subscription rate for traditional markets was recorded at 50.2% as of 2018.

This means that 49.8% of domestic traditional markets are not subscribed to fire insurance. By city and province nationwide, Daejeon had the highest fire insurance subscription rate at 69.2%, while Jeju showed the lowest rate at 21.1%.

Since 2017, SEMAS has offered a traditional market mutual aid product called the "Traditional Market Fire Mutual Aid" targeting stores registered and operating in traditional markets. However, despite being a product cheaper than private insurance, its subscription rate was only 13.2% as of the end of last month.

Meanwhile, the budget for the traditional market fire mutual aid project has been decreasing every year. The related budget dropped about 14% from 1.15 billion KRW in 2017 to 990 million KRW this year. Especially this year, with a decline in subscription rates, only about 264 million KRW, which is 27% of the budget, was executed.

On the other hand, among the 67 stores in the Cheongnyangni Traditional Market where the fire occurred early on the 21st, about 10 stores and some stores in the adjacent fruit and vegetable market were also damaged. Although there were no casualties, stores affected by the flames suffered damage such as collapsed roofs and scorched fruits.