The Financial Supervisory Service (FSS) announced on the 20th that during 2025, it refunded a total of 1.36 billion KRW in additional insurance premiums to 2,289 victims of car insurance fraud, with the Insurance Development Institute and non-life insurance companies. The average refund per person was about 600,000 KRW.
The FSS explained that over the past five years, they have refunded an average of 1.21 billion KRW of additional premiums to approximately 2,540 car insurance fraud victims each year. Since the introduction of the additional premium refund system in June 2009, a total of 11.2 billion KRW has been refunded to over 24,000 individuals.
Last year, the FSS promoted a plan to contribute unclaimed additional premiums as dormant insurance funds to the Korea Inclusive Finance Agency for systematic and efficient management. From May, the long-term (over 10 years) unclaimed additional premiums, amounting to about 8.7 million KRW, will be systematically contributed annually after insurance companies guide related matters to the fraud victims.
Henceforth, car insurance fraud victims can receive their premium refunds from the respective insurance companies before the contribution to the Korea Inclusive Finance Agency, and from the agency afterward.
Although the FSS noted that non-life insurance companies are providing guidance on the fraud incidents and refund procedures to affected consumers, there are cases where the refund process does not proceed due to reasons such as changes in consumer contact information or rejected communication.
The FSS is operating a “Unified Inquiry Service for Excessive Auto Insurance Premiums” through the Insurance Development Institute, allowing consumers to directly verify fraud incidents and apply for refunds themselves. The FSS added that it will continue to make efforts to ensure that the quick refunding of additional premiums and the relief of insurance fraud victims are faithfully carried out.