Industrial accident compensation insurance (hereinafter, IACI) is a social insurance system in which the government provides occupationally ill and injured employees with compensation to be paid by his/her employer under the Labor Standards Act. Under this system, individual employers are obligated to adhere to a given contribution to the insurance fund and, in return, are not responsible for paying compensation for employees injured or becoming ill on the job. Instead, the government uses this fund to compensate such employees.
IACI premiums are fully paid by the employer, and are calculated by multiplying the total income of all workers in the workplace by the insurance rate announced by the government according to the business' risk level. In applying the industrial accident insurance premium rate for the same business, if the premium benefits for workers exceed 85% or less than 75% of the previous three years of premium payments, the premium rate applied to the business is determined up to 20% higher or lower for the next business year. Korea Workers' Compensation and Welfare Service, “Accidents and Employment Insurance Practical Handbook for 2022,” pp. 39-44. Lee, Sanggook, The Industrial Accident Compensation Insurance Act (I), 3rd Ed., Daemyung Publishing Co., Jan. 2014, p. 554.
As a result, industrial accident insurance premiums may increase the following year if a significant amount has been paid out in IACI benefits, which will affect the intention of companies for whom the IACI is not mandatory, to participate in the program as it can expect higher premiums. Jeon, Kwangseok, Park, Jisoon and Kim, Bokki, The Social Security Act, 4th Ed., Shinjosa, 2017, p. 188.

Insurance benefits shall be paid at the worker's (or survivor's) request if a worker at a workplace covered by IACI has an injury, illness or accident requiring at least four days of medical care. Types of insurance benefits include nursing care, leave of absence, sick compensation pensions, disability, survivor, nursing care, funeral expenses, and vocational rehabilitation.