Aquaculture Disaster Insurance Neglects Fishermen, Boosts Profits for Fisheries Cooperatives

A "Bonus Bonanza" for Executives Funded by Public Money
Moon Geumju: "Establish a Separate Fund... Gradual Phase-Out Needed"

Moon Geumju, member of the Democratic Party of Korea.

There have been allegations that the "Aquaculture Disaster Insurance," introduced to protect fishing households from disasters caused by abnormal weather, is only serving to increase the profits of the National Federation of Fisheries Cooperatives, which operates the program.

According to data submitted by Moon Geumju, a member of the Democratic Party of Korea representing Goheung, Boseong, Jangheung, and Gangjin in South Jeolla Province, to the Ministry of Oceans and Fisheries for the National Assembly audit on October 15, the total amount of aquaculture disaster insurance premiums paid by fishing households, the government, and local governments from 2020 to 2024 reached 153.89255 billion won. However, the total insurance payouts made by the National Federation of Fisheries Cooperatives to fishing households amounted to only 95.44605 billion won, resulting in a staggering gap of 58.4465 billion won between premiums paid and payouts received.

In particular, the budget provided by the government and local governments to support disaster insurance enrollment was at least 145.2 billion won, which is nearly 50 billion won more than the total insurance payouts made to fishermen. Even excluding the premiums paid directly by fishermen, a much larger amount of public funds was invested compared to the insurance payouts, raising concerns that the system is effectively being used as a source of profit for the National Federation of Fisheries Cooperatives.

During this period, the National Federation of Fisheries Cooperatives distributed 1.09 billion won in performance bonuses to its executives, and the proportion of employees earning annual salaries of over 100 million won increased significantly. The National Federation of Fisheries Cooperatives Bank also paid out more than 5.609 billion won in executive performance bonuses, with 37% of its employees classified as high-income earners, indicating strong business performance. This has fueled criticism that the surplus from public insurance funds is being used to pay high bonuses to executives and employees of the National Federation of Fisheries Cooperatives.

Due to the lack of effectiveness of the disaster insurance and the concentration of profits within the National Federation of Fisheries Cooperatives, fishermen's trust in the insurance has hit rock bottom. In fact, the enrollment rate for aquaculture disaster insurance last year did not even exceed 40%. Some have even suggested that, rather than paying premiums to the National Federation of Fisheries Cooperatives, it would be more efficient to distribute the relevant budget directly to fishing households.

Moon Geumju stated, "There have been many criticisms in the National Assembly regarding the problems with aquaculture disaster insurance, but no fundamental improvements have been made due to reasons such as rising premiums." He added, "As the limitations of aquaculture disaster insurance have become clear through this audit, special measures are urgently needed."

He further emphasized, "We need to establish a separate fund to ensure the stable livelihood of fishermen in the face of the climate crisis and to promote the sustainable development of the fisheries industry," adding, "For policy insurance whose limitations have become clear, we should consider gradually and eventually reducing or abolishing it in the long term."