The Supreme Court of Korea has held that concealing the full circumstances of an electric kickboard accident constitutes insurance fraud in Korea. On September 25, 2025, the Korean Supreme Court’s 3rd Criminal Division (Presiding Justice Noh Kyung-pil) reversed an acquittal at a Korean appellate court for a Defendant charged with violating the Korean Special Act on the Prevention of Insurance Fraud. The Court reversed and remanded the case to the Jeju District Court with a guilty verdict (2024 Do 11951). All cases concerning the potential for a fine may, for foreigners, lead to deportation and an exit ban; thus, even these types of crimes, which rarely result in jail sentences, can have serious consequences for expats residing in Korea.

Korean Insurance Fraud

Korean Insurance Fraud: Korean Supreme Court Rules Concealing the Full Details of an Accident is Criminal Fraud

Facts

  1. In 2021, the Defendant, a branch manager at an insurance company, handled a claim involving a customer’s son who was injured while riding an electric kickboard. Defendant knew that the policy excluded injuries arising from the operation of a “two-wheeled vehicle,” but he nonetheless recorded the cause of injury as a generic “fall.”
  2. Defendant intentionally omitted the emergency medical chart that revealed the full circumstances leading to the injury to support a claim that would otherwise face exclusion under the policy.
  3. The main issue in the matter was whether an incomplete description of the accident’s cause is a “deceptive act” sufficient to constitute insurance fraud in Korea.

Korean Lower Court Decisions

Korean Trial Court: The court of first instance imposed a fine of KR₩ 2 million on the Defendant. The court ruled that the Defendant’s falsification and deliberate omission of key medical documents constituted a deceptive act, in of itself, since the full details of the nature and circumstances of the injury were not revealed.

Korean Appellate Court: The appellate court acquitted the Defendant. The court reasoned that, at the time the contract was signed in 2019, it was unclear whether electric kickboards were included within the definition of a “two-wheeled vehicle” under the policy. The court opined that the insurer had failed to satisfy its duty to explain exclusions regarding electric kickboard accidents; therefore, the insured’s right to claim benefits remained legitimate, negating a fraudulent intent by the Defendant.

Korean Supreme Court Decision

The Supreme Court of Korea rejected the reasoning of the appellate court. The Supreme Court held:

  • The Defendant’s conduct exceeded what is “socially acceptable” when asserting a right to insurance benefits.
  • Knowingly submitting a false cause of injury and withholding documents constituted a clear deceptive act, independent of any later determination regarding coverage.
  • Even if the insurer might still be liable due to its own failure to explain exclusions, this does not excuse or negate fraud committed during the claims process.

The Court noted that: “Even if the Defendant is obligated to pay out an insurance claim because he failed to fulfill the duty to explain that he would not pay out insurance money for an accident that occurred while driving an ‘electric kickboard,’ that alone should not be viewed differently. . . The Defendant’s actions exceeded the range of what is socially acceptable as a means of exercising rights and constituted an act of deception under the crime of fraud.”

by Sean Hayes

Sean Hayes is the first non-Korean attorney to have worked for the Korean court system (Constitutional Court of Korea) and one of the first non-Koreans to be a regular member of a Korean law faculty. Sean is ranked, for Korea, as one of only a few non-Korean lawyers as a Top Attorney by AsiaLaw. Sean is regularly quoted by leading international media outlets, including The Wall Street Journal, The New York Times, France 24, and Bloomberg.

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