Does comprehensive insurance always prevent prosecution?

No—major violations, deaths, hit-and-runs, and serious injuries can still be prosecuted.

Who pays the criminal settlement?

The driver, though driver's insurance riders often cover it.

Act on Special Cases Concerning Traffic Accidents (South Korea)

⚖️ Law By CampusDown Wiki Editorial Team Last updated October 26, 2026

Korea's Traffic Accident Special Act bars prosecution of drivers who negligently injure someone, provided they carry comprehensive insurance or settle with the victim. The 12 major violations, fatalities, hit-and-runs, and serious injuries are exceptions and can still be prosecuted.

Contents

1. Background
2. Core rules and the 12 exceptions
3. Practical points
4. FAQ
5. References

Background

As car ownership exploded in the 1970s, every at-fault driver faced prosecution for occupational negligence, threatening to give hundreds of thousands of drivers criminal records. The 1981 act exempted drivers from prosecution when insurance made victims whole. That encouraged drivers to buy insurance and sped up compensation. Critics complained that insurance let drivers injure people with impunity. In 2009 the Constitutional Court ruled the immunity unconstitutional where victims suffer serious injury.

Core rules and the 12 exceptions

Negligently injuring or killing someone while driving carries up to five years' imprisonment or a ₩20 million fine. In injury crashes, however, there's no prosecution if the driver has comprehensive (unlimited bodily injury) insurance or the victim doesn't want charges. The 12 major-negligence exceptions are:

running a signal
crossing the center line
speeding by more than 20 km/h
illegal passing
railroad-crossing violations
failing to protect pedestrians in a crosswalk
unlicensed driving
drunk or drugged driving
driving on the sidewalk
failing to secure passengers
school-zone safety violations
unsecured cargo

These, along with fatal crashes, hit-and-runs, and serious injuries, can be prosecuted even with insurance.

Practical points

In major-violation cases a criminal settlement with the victim heavily affects sentencing. Driver's insurance riders can cover the settlement and legal fees. Insurers handle civil damages and consolation money, but the criminal process is separate. The 2020 "Minsik Act" sharply raised penalties for crashes that injure children in school zones. After any crash, stop, help the injured, and report it, or you risk a hit-and-run charge.

FAQ

Does comprehensive insurance always prevent prosecution?: No—major violations, deaths, hit-and-runs, and serious injuries can still be prosecuted.
Who pays the criminal settlement?: The driver, though driver's insurance riders often cover it.

Sources reviewed: 2026-10-26

References

교통사고처리 특례법(1981년 제정) 제3조, 제4조.
헌법재판소 2009. 2. 26. 2005헌마764 결정(종합보험 가입 시 공소제기 금지 일부 위헌).
도로교통공단. (2024). 교통사고 통계분석.

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This article was last updated on October 26, 2026. It is based on widely recognized original works and textbooks; when citing it in a paper, please check the original sources listed in the references.