Korea Local Finance Association Supports Enhanced Construction Safety for Local Governments Enrolled in Construction Works All-Risk Insurance

The Korea Local Finance Association (hereinafter referred to as the Association, Chairman Jung Sunyong) announced on July 30 that it has signed an agreement with Gangseo-gu, Busan (District Mayor Kim Hyeongchan) and, for the first time among all local governments nationwide, completed comprehensive enrollment in construction works all-risk insurance for all public construction projects ordered in Gangseo-gu, Busan starting in July.

Logo of Korea Local Finance Association. Provided by Korea Local Finance Association.

Construction works all-risk insurance provides coverage for damages to construction objects occurring during construction, as well as liability for bodily injury and property damage to third parties. Until now, enrollment has mainly focused on large-scale projects with construction costs of 20 billion KRW or more, and compensation has been problematic in the event of accidents at small construction sites not covered by insurance or mutual aid.

To address these issues, the Association and Gangseo-gu, Busan, for the first time nationwide, promoted comprehensive insurance enrollment for all public construction projects during the contract period. This approach reduces the administrative burden of enrolling insurance for each individual project and sets affordable premiums, thereby actively supporting the establishment of a robust safety net in Gangseo-gu, Busan.

The Association, established in 1964, is a specialized local finance institution providing financial support services to 243 local governments and over 180 local government-funded or invested institutions nationwide. Since 2017, it has operated construction works all-risk insurance to systematically manage accident risks at construction sites ordered by local governments and public corporations, and to enhance construction safety.

Jung Sunyong, Chairman of the Association, stated, "We will actively expand support measures to meet the needs of member local governments nationwide, including Gangseo-gu, Busan, and do our utmost to create a safer construction environment."