"100% Support for Pohang Earthquake Damage Costs"... Legislation Amendment to Be Processed Within the Year

Amendment to Pohang Earthquake Damage Relief Act Approved at Cabinet Meeting on 24th
'Expansion of Damage Relief Support Fund' Key Point...To Be Submitted to National Assembly This Month
National and Local Governments to Share Funding...100% Support for Damage Amount
Introduction of Reconsideration Procedure...Extension of Statute of Limitations for Compensation Claims

[Asia Economy Reporter Kim Bo-kyung] The government plans to pass a bill within this year that provides 100% compensation of the damage amount to the victims of the Pohang earthquake.

The Ministry of Trade, Industry and Energy announced that the amendment to the "Special Act on the Investigation of the Truth and Relief of Damage of the Pohang Earthquake" was approved at the Cabinet meeting on the 24th and is scheduled to be submitted to the National Assembly within this month.

The Pohang Earthquake Damage Relief Act was enacted and promulgated in December last year to promote economic revitalization and community recovery in Pohang City through the investigation of the truth of the Pohang earthquake and damage relief.

Under this law, recognition of victims and applications for damage relief support funds have been implemented since September. After investigating the damage facts, the payment of support funds is expected to begin next year.

This amendment is a follow-up measure pursued after the government, Gyeongsangbuk-do, and Pohang City agreed in August to improve the system for substantial damage relief and sufficient protection of victims' rights when establishing the support fund criteria.

Through consultations between the government and local governments at that time, it was agreed to ▲ provide victims with 100% of the damage amount, with funding to be borne 80% by the national government and 20% by local governments, and ▲ to pursue legal amendments for grounds for reconsideration and extension of the statute of limitations for claims for damages.

Asia Economy DB=Photo by Mun Honam munonam@

The amendment establishes the basis for the national and local governments to jointly bear the funding for support funds. The funding burden ratio is set at 80% national and 20% local, which will be included in future enforcement ordinances. Through this, victims are expected to receive 100% compensation of the damage amount.

The amendment also introduces a reconsideration procedure to guarantee the right of applicants for support funds to raise objections. Currently, there is no regulation for reconsideration of damage relief decisions, so applicants who disagree with the decision must bear the burden of filing administrative appeals or lawsuits, which require significant time and cost.

The amendment includes a special provision on the statute of limitations for claims for damages related to the Pohang earthquake. This measure considers the long period since the Pohang earthquake occurred in November 2017. Even if there is an intention to claim damages against the state or operators, the special provision on the statute of limitations ensures that no victim is unable to file a lawsuit due to the lapse of time. The statute of limitations is extended from 3 years to 5 years from the date the Pohang earthquake victim becomes aware of the damage and the perpetrator.

An official from the Ministry of Trade, Industry and Energy stated, "Once the law is amended, 100% of the damage amount will be paid to victims, which is expected to help the substantial recovery of victims' damages," adding, "We plan to push for the bill's passage within this year and start revising the enforcement ordinance immediately after the amendment."