Labor ministry locks in 3.9 billion won budget for injury compensation agents

South Korea's labor ministry has confirmed 3.9 billion won ($2.91 million) in the government's 2027 budget for a program that gives low-income workers free legal help when they file industrial injury claims, with the system due to begin operating in March next year.

The Ministry of Employment and Labor said the funding, which covers an estimated 5,500 cases, was included in the budget proposal after the National Assembly passed the legal basis for the program in September, amending the Industrial Accident Compensation Insurance Act. The law takes effect on March 30, 2027.

The program is aimed at workers and surviving family members covered by the industrial accident insurance system whose average monthly pay is below 3 million won ($2,235). Those who have struggled to file claims because of the cost will be able to receive legal assistance from lawyers and labor consultants at no charge to themselves, with the state paying the representatives' fees of up to 700,000 won ($522) per case.

Support covers claims for insurance benefits and survivors' benefits for work-related diseases, excluding conditions such as noise-induced hearing loss and pneumoconiosis, as well as objections to decisions on those claims, whether through a review or a re-examination.

The government expects the program to speed up and improve the reliability of injury rulings, because specialists will step in from the initial stage to help with document submissions and other paperwork.

"The industrial accident compensation agent system is the result of the state's strong will to lower the threshold for industrial accident applications and to substantively protect the benefit rights of injured workers," Park Seung-heup, chairman of the Korea Workers' Compensation and Welfare Service, said. He added that the service would build a pool of qualified representatives and prepare thoroughly to settle the program successfully in the field.

The welfare service, which will run the program, disclosed the budget confirmation on Monday.