Insurance litigation—South Korea—Q&A guide
Insurance litigation—South Korea—Q&A guide

The following Dispute Resolution practice note provides comprehensive and up to date legal information covering:

  • Insurance litigation—South Korea—Q&A guide
  • 1. In what fora are insurance disputes litigated?
  • 2. When do insurance-related causes of action accrue?
  • 3. What preliminary procedural and strategic considerations should be evaluated in insurance litigation?
  • 4. What remedies or damages may apply?
  • 5. Under what circumstances can extracontractual or punitive damages be awarded?
  • 6. What rules govern interpretation of insurance policies?
  • 7. When is an insurance policy provision ambiguous and how are such ambiguities resolved?
  • 8. What are the mechanics of providing notice?
  • 9. What are a policyholder’s notice obligations for a claims-made policy?
  • More...

This Practice Note contains a jurisdiction-specific Q&A guide to insurance litigation in South Korea published as part of the Lexology Getting the Deal Through series by Law Business Research (published: February 2021).

Authors: Cho & Lee—Sung Keuk Cho; Hanna Park

1. In what fora are insurance disputes litigated?

Insurance disputes can be resolved by litigation before the court (including mediation at the court), or through arbitration and conciliation at the Financial Supervisory Service or the Korea Consumer Agency.

A conciliation procedure at the Financial Supervisory Service can be commenced upon application by the interested party (insured) to the Financial Supervisory Service.

2. When do insurance-related causes of action accrue?

A cause of action usually accrues when loss caused by an accident specified in an insurance policy occurs. On the other hand, regarding liability insurance under the Korean Commercial Act (KCA), the cause of action for seeking payment of insurance proceeds accrues when the insured's liability has been confirmed through the insured's payment of damages to a third-party victim, an admission of debt, an amicable settlement or the court's judgment (article 723, section 1 of the KCA).

Under Korean law, a third-party victim is also entitled to file a direct action against the insurer that executed a liability insurance contract with the insured when a loss resulting from the insurance accident occurs to him or her (article 724, section 2 of the

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