Eradicating Fraudulent Claims in Industrial Accident Insurance... Korea Workers' Compensation and Welfare Service Forms TF to Implement Drastic Measures

Chairman → Director, Regional Headquarters Chief → Team Leader

Industrial Accident Insurance Operation Improvement Task Force Also Established

The Korea Workers' Compensation and Welfare Service (Director Park Jong-gil) has introduced a drastic measure with the director taking the lead to eradicate fraudulent claims in industrial accident insurance.

On the 19th, the Service announced plans to implement special measures to enhance the transparency and fairness of industrial accident insurance operations, following criticisms of inadequate insurance management such as fraudulent claims raised during last year's National Assembly audit and the results of a special audit by the Ministry of Employment and Labor.

First, to eliminate fraudulent claims, the director will personally lead a “Special Task Force to Eradicate Fraudulent Claims,” with seven regional headquarters chiefs serving as team leaders, operating indefinitely.

This task force will analyze and extract types of fraudulent claims by illness, region, and industry for planned investigations, and conduct joint investigations with related agencies such as the prosecution and the Ministry of Employment and Labor into illegal brokers and hospital administrators involved in fraud.

Additionally, to encourage reporting of fraudulent claims, the Service will expand reporting centers at regional headquarters alongside the main hotline, actively promote the reward system, and publicize detected cases of fraudulent claims.

The Service will also strengthen penalties and recovery of illegally obtained amounts through punishment and double collection. Monthly performance will be monitored, and quarterly progress reports and major cases will be disclosed.

Simultaneously, a “Task Force for Improving Industrial Accident Insurance Operations” will be launched to enhance fairness and efficiency in handling industrial accident insurance.

This task force will coordinate with the Ministry of Employment and Labor’s industrial accident insurance system improvement task force to review ways to increase fairness and transparency in insurance operations. To ensure objectivity and effectiveness, all members except the director, who serves as the head, will be external experts.

The Service plans to establish organizational restructuring and performance evaluation systems to ensure that the improvement measures derived through these procedures are effectively implemented.

Director Park Jong-gil stated, “Through these special measures, we will eliminate blind spots in industrial accident insurance and devote our efforts to transforming the system into a virtuous cycle social service that leads to workplace return through rehabilitation rather than simple compensation.”

Korea Workers' Compensation and Welfare Service.