Kim Won: "Traditional Market Fire Insurance Subscription Rate Only 36%"

"10.8 Billion Won in Property Damage Over Five Years...
Urgent Need for Systemic Reform"

Won Kim, member of the Democratic Party of Korea.

In the past five years, nearly 300 fires have occurred in traditional markets nationwide, resulting in damages exceeding 10 billion won (approximately 10 million USD). However, the subscription rate for the government-run traditional market fire insurance remains below half.

According to data analyzed by Assemblyman Won Kim of the Democratic Party of Korea (representing Mokpo, South Jeolla Province), which was submitted by the Ministry of SMEs and Startups, there were a total of 297 fires in traditional markets from 2021 to August of this year, with property damage amounting to 10.8 billion won. In particular, the fire at Seocheon Specialty Market last year completely destroyed 227 stores, causing damages to exceed 6.7 billion won and marking a more than fourfold increase compared to the previous year.

The leading cause of these fires was electrical factors, such as aging electrical facilities, accounting for 41.8%, while carelessness was responsible for over 30%. Experts point out that the fundamental cause is the lack of regular inspections and replacements.

The government and the Small Enterprise and Market Service currently operate the "Traditional Market Fire Insurance," which is more affordable than private insurance. However, as of 2023, the nationwide subscription rate was only 36.8%. Seoul recorded the lowest subscription rate at 24.6%.

Assemblyman Kim stated, "Although local governments subsidize 60% to 80% of the insurance premiums, it still poses a significant burden for small business owners." He added, "A legal basis for national funding support has been established through legislative amendments, but the budget has not yet been secured."

The problem is not limited to traditional markets. Shopping districts and alley-type shopping districts also suffer around 100 fires annually, with damages exceeding 3 billion won last year alone. However, under the current system, these areas are excluded from fire insurance coverage and are left in an institutional blind spot.

Assemblyman Kim said, "I have proposed a special law amendment to expand fire insurance eligibility to not only traditional markets but also shopping districts and alley-type shopping districts." He emphasized, "The state must provide national funding to support fire insurance in order to reduce the burden on small business owners. It is urgent to improve the system to provide stronger protection."