Jiwon Park: "50% of Estimated Insurance Payment to Be Advanced Within 30 Days"

Insurance Surcharge Waived for Fish Farmers Suffering Large-Scale Damage

In response to the mass mortality of 110,000 flatfish due to high water temperatures at fish farms in Wando County, South Jeolla Province, measures are being implemented to provide an advance payment of 50% of insurance compensation and to waive insurance premium surcharges.


Jiwon Park, a member of the National Assembly from the Democratic Party of Korea (representing Haenam, Wando, and Jindo), announced on August 7 that, following consultations with the Ministry of Oceans and Fisheries and the National Federation of Fisheries Cooperatives, an improvement plan for the Fishery Disaster Insurance system has been established.

Representative Jiwon Park is visiting an aquaculture farm with Wando County Governor Shin Kim, County Council Chairman Junghuk Choi, and other local lawmakers to assess the damage situation. Photo by Park Jiwon's office

Representative Jiwon Park is visiting an aquaculture farm with Wando County Governor Shin Kim, County Council Chairman Junghuk Choi, and other local lawmakers to assess the damage situation. Photo by Park Jiwon's office

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The core of the plan, as outlined by Park, is the swift alleviation of financial difficulties faced by the affected fish farmers. The National Federation of Fisheries Cooperatives has agreed to provide up to 50% of the estimated insurance payment within 30 days after the completion of the damage assessment by Wando County, even before the final amount of damages is confirmed.


As a result, fish farmers experiencing cash shortages immediately after the disaster will be able to secure emergency funds within this month. The remaining 50% of the insurance payout is also scheduled to be provided within 30 days after the final report is submitted.


The policy also addresses the recurring issue of a sharp increase in insurance premiums in the following year after receiving insurance payouts. Starting August 15, the Ministry of Oceans and Fisheries will waive insurance surcharges for fish farmers who suffer large-scale extraordinary disasters. Fish farms that experienced water temperature damage at the top 10% level this year are eligible. This measure is intended to fundamentally prevent an increased financial burden when fish farmers attempt to rebuild using insurance payouts.


Park explained that the ministry currently keeps the self-pay portion for fish farmers at 20–30% or less, while insurance payouts can reach up to 170% of the paid insurance premium.


Specifically, 70–80% of the insurance premiums are subsidized by the national and local governments, and last year alone, approximately 10 billion won in support was provided to insurance companies. For flatfish in particular, a higher national subsidy rate is applied compared to other fish species, and the insurance coverage rate is set at 80–90% of the market price, creating a system that maximizes compensation for fishermen's losses.



Jiwon Park stated, “We will continue working with the Ministry of Oceans and Fisheries to find ways to reduce fishermen’s burdens and increase benefits as they repeatedly face high water temperature disasters caused by climate change.”


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