Sometimes a car-insurance renewal reminder slips by in Korea and the policy is renewed a few days late. If the car was only parked, is that fine? The Compulsory Motor Vehicle Insurance Act (the Guarantee of Automobile Accident Compensation Act) fines owners for every day without compulsory insurance even if the car is not driven. Driving it in that state is a criminal offence, not just a fine. We read the Act and Annexes 5 and 6 of its Decree as written and worked out the fine for each number of days uninsured.
1. The fine grows with the days uninsured. For a private vehicle, missing liability (bodily injury) cover costs 10,000 won up to 10 days, then 4,000 won a day (capped at 600,000 won); missing property-damage cover costs 5,000 won up to 10 days, then 2,000 won a day (capped at 300,000 won). With both missing, day 30 comes to 135,000 won.
2. Driving uninsured is a crime. It carries up to 1 year in prison or a fine of up to 10 million won; if caught without an accident, it can be settled by a penalty charge (400,000 won for a private passenger car).
3. Insurers must warn you twice. They must notify you that the contract is ending between 75 and 30 days and between 30 and 10 days before expiry.
What compulsory insurance is — injury and property
Article 5(1) of the Act requires every vehicle owner to hold liability insurance for death or injury, and article 5(2) insurance for damage to others’ property. Together they are called “compulsory insurance.” Decree article 3 sets the limits.
| Cover | Limit | Basis |
|---|---|---|
| Injury — death | Up to 150 million won per victim (at least 20 million won) | Decree art. 3(1)1 |
| Injury — injury and lasting disability | By grade in Annexes 1 and 2 | Decree art. 3(1)2 and 3 |
| Property damage | Up to 20 million won per accident | Decree art. 3(3) |
The “comprehensive” policy most drivers buy adds higher limits and own-damage cover on top of this compulsory layer. The fines here apply when the compulsory layer lapses.
Even when parked — fines (Decree Annex 5)
Annex 5, individual standards, item ga 2) private vehicles (a) uninsured for 10 days or less: 10,000 won; (b) uninsured for more than 10 days: 10,000 won plus 4,000 won per day counted from day 11, the total not exceeding 600,000 won per vehicle.
For property-damage cover (art. 5(2)), item na 2) sets 5,000 won, then 2,000 won a day from day 11, up to 300,000 won. If both lapse, both lines apply. By day:
| Days uninsured | Injury + property | Total |
|---|---|---|
| Up to 10 | 10,000 + 5,000 won | 15,000 won |
| 30 | 90,000 + 45,000 won | 135,000 won |
| 60 | 210,000 + 105,000 won | 315,000 won |
| 90 | 330,000 + 165,000 won | 495,000 won |
| 158 or more | 600,000 + 300,000 won (caps) | 900,000 won |
The day examples and arithmetic are ours. We counted “per day from day 11” as the days beyond 10 times the daily amount; on that reading both lines reach their caps on day 158. Motorcycles are 6,000 won plus 1,200 won a day up to 200,000 won (injury) and 3,000 won plus 600 won a day up to 100,000 won (property); commercial vehicles are 30,000 won plus 8,000 won a day up to 1,000,000 won (injury), all in the same annex. The statutory ceiling in article 48(3) is 3 million won.
General standard (b) of the annex excludes days after the registration plates were impounded, and (c) allows a reduction of up to one half in some circumstances (not for those in arrears).
Driving uninsured — penalties
Article 8 bans driving an uninsured vehicle on the road, and article 46(3)2 punishes the owner who does so with up to 1 year in prison or a fine of up to 10 million won. Where no accident occurred, it is treated as a “minor offence” (art. 50) and can be settled with the penalty charges in Decree Annex 6.
| Driving uninsured | Penalty charge | Basis |
|---|---|---|
| Private passenger car | 400,000 won | Annex 6 item 2 |
| Private van, truck, special vehicle, construction machinery | 500,000 won | Annex 6 item 2 |
| Motorcycle | 100,000 won | Annex 6 item 3 |
Article 50(1) excludes cases where the uninsured driver causes a traffic accident — those do not end with a penalty charge. Commercial passenger cars are 1 million won and commercial vans 2 million won.
Away for a long time — exemption
Article 5-2 lets an owner who cannot use the car for 3 months to 2 years, for example while abroad, obtain approval from the provincial governor (or the delegated city, county or district head) for an exemption from compulsory insurance for that period. The registration certificate and plates must be deposited, and driving during the exemption is punishable under article 46(3). Decree article 5-2 lists grounds such as working or studying abroad and illness or injury certified by a doctor as preventing driving.
Checklist
- ☐ Your expiry date — do not ignore the two notices (75–30 and 30–10 days before)
- ☐ Until the car is sold or scrapped, a parked car still needs compulsory insurance
- ☐ Abroad for more than 3 months? Apply for the exemption (plates deposited)
- ☐ Already lapsed? Insure today — after day 10 it adds 6,000 won a day (injury + property)
Questions that remain
I renewed one day late — will I be fined?
The annex’s first line is “uninsured for 10 days or less.” Any gap falls under it, and the fine is imposed by the city, county or district head (art. 48(5)).
I bought a used car — what about the seller’s insurance?
Compulsory insurance is the owner’s duty, so the new owner needs cover in their name from the day they take the car. The deadline for transferring ownership is in used-car transfer.
Sources
- Guarantee of Automobile Accident Compensation Act [in force 1 Oct 2025] [Act No. 21065] — original text (checked 30 September 2026). Source for article 5 (injury and property), article 5-2 (3 months to 2 years, plates deposited), article 6(1) (notices), article 8 (no driving), article 46(3) (1 year, 10 million won), article 48(3) and (5), and article 50 (minor offences, accidents excluded).
- Enforcement Decree of the Act [in force 15 Sep 2026] [Presidential Decree No. 36689] — original text. Source for article 3 (150 million and 20 million won), article 5-2, Annex 5, standards for fines (amended 15 September 2026) and Annex 6, penalty charges.
- Our own working. The totals by day, “158 days” and “6,000 won a day” are our arithmetic from the annex wording.
Where to check further
- Whether your car is insured — your insurer, or the city, county or district where the car is registered.
- Exemption approval — the vehicle registration office.
Written on 30 September 2026. Articles and annexes are from the National Law Information Center; the tables and arithmetic are ours. Another deadline for car owners is in late car inspection.
