A statutory compulsory insurance under the Special Act on the Safety Management of Multi-Use Establishments. For 23 business types — restaurants, karaoke, PC rooms, saunas, postnatal-care centres, micro-studios and others — it compensates bodily and property loss to third parties such as customers from fire or explosion, up to the statutory limits (death KRW 150m / injury KRW 30m / property KRW 1bn).
N2N Insurance Brokerage does not represent any single insurer — it independently represents the client as an FSS-registered broker (Reg. No. 2026-012201). We compare the wordings, rates and service of AIG · Chubb · DB · Hyundai · KB · Meritz to propose the cover and price best suited to your risk. Each insurer's full wording is provided at application and binding.
A statutory compulsory insurance under Article 13-2 of the Special Act on the Safety Management of Multi-Use Establishments. Operators in the 23 multi-use business types must insure by the date business begins; non-compliance draws fines of KRW 1m (first), 2m (second) and 3m (third offence).
Seating area of 100㎡ or more.
Mandatory for all premises.
Internet-computer-game facility businesses.
Includes micro-studios, postnatal-care centres and indoor golf ranges.
| Death | per person KRW 150m |
|---|---|
| Injury | per person KRW 30m (by grade) |
| Permanent disability | per person KRW 150m |
| Property damage | per occurrence KRW 1bn |
| Excess-limit endorsement | Above the compulsory limit (e.g. death KRW 300m, property KRW 3bn) |
|---|---|
| Tenant-liability combination | Combined tenant fire liability to the building owner |
| Food poisoning & infectious disease | Extension for food-borne incidents at restaurants |
| Policy period | 1 year |
|---|---|
| Insurers | AIG · Chubb · DB · KB · Meritz · Hyundai comparison quotes |
| Compulsory limit | Death KRW 150m / injury KRW 30m / property KRW 1bn |
| Turnaround | Same day to 1 business day |
| Statutory basis | Article 13-2 of the Special Act on the Safety Management of Multi-Use Establishments |
If the insured event has already occurred at the time the contract is made, the contract is void. However, where the contract is void due to the company's intent or negligence, or where the company knew or could have known of the nullity before acceptance yet did not refund the premium, the company refunds the premium with interest at the policy-loan rate published by the Korea Insurance Development Institute, compounded annually, for the period from the day after payment to the day of refund.
The specific losses not covered (exclusions) are set out in each insurer's policy wording and product description; the main exclusions are summarised on this page. For other cover-specific grounds on which claims are not paid, please refer to the policy wording.
The company provides cover, in accordance with the policy, from the time it accepts the application and receives the first premium. Where the company accepts the application after receiving the first premium with it, cover also begins from the time the first premium was received.
The application must be completed by the policyholder, and the policyholder and the insured must sign it by hand. Failure to sign by hand may result in disadvantages regarding the validity of the contract. On an internet cyber-mall, an electronic signature may be used instead.
The policyholder has the right to be given and have explained the information needed about the product they wish to buy.
The insurer and N2N Insurance Brokerage must explain the important matters of the product to ordinary financial consumers.
When applying, the policyholder, the insured or their agent must disclose truthfully the facts they know regarding the questions in the application (including the questionnaire). Otherwise the claim may be declined or the contract cancelled. Where insurance is taken out by telephone or other means of communication, the duty is performed by answering the seller's questions, which are recorded, without a separate written questionnaire, so answers must be given with particular care.
If, after the contract is made, any of the following arises in respect of the subject-matter insured, the policyholder or the insured must notify the company in writing without delay and obtain endorsement on the policy.
The surrender value is the amount paid if the contract is cancelled early. Unlike bank savings, insurance combines risk protection and savings: part of the premium is paid out as claims to other policyholders who suffer accidents, and part covers the insurer's operating expenses, so the surrender value on early cancellation may be less than the premiums paid, or nil.
Except as provided by law, the insurer and N2N Insurance Brokerage do not collect, use, inspect or provide personal data related to this contract — for its conclusion, maintenance and claim payment — without the consent of the policyholder, the insured or the beneficiary. However, for those purposes the insurer may, with the consent of the policyholder and the insured and in accordance with law, provide personal data to other insurers and insurance-related bodies.
The above is a summary and excerpt of the policy wording; for grounds on which claims are not paid and other details, please refer to the policy wording and product description.
The 23 mandatory business types under the Special Act — organised into five categories
Snack bars and general restaurants (seating 100㎡ or more, 66㎡ in a basement) and entertainment/cabaret bars are all mandatory.
Karaoke and internet-computer-game (PC) rooms are mandatory for all premises regardless of area.
Saunas, bathhouses and the like are classed as multi-use businesses and must insure at the same time as the business report.
Cinemas, theatres and the like become mandatory above a certain scale, as determined by the competent fire station.
Academies, postnatal-care centres, micro-studios and indoor golf ranges are also among the 23 types, with different area and floor criteria.
A general restaurant's careless kitchen flame caused a fire; several customers were treated in hospital for smoke inhalation, and the fixtures and interior of an adjacent leased shop were damaged. Under the compulsory limit, bodily and property loss to third parties such as customers could be assessed per the wording; but the owner's own lost revenue and business-interruption loss, and damage to the leased premises owed to the building owner, were not handled by the compulsory limit, leaving separate cover as a matter to review.
Source: (General industry example) · Commercial insurance from the field #upcoming
Read the full analysis — the gap between the multi-use compulsory limit and the owner's additional cover (in progress)The wording and structure points owners most often overlook
Death KRW 150m, injury KRW 30m and property KRW 1bn are the minimum limits set by the Act. Real fires can exceed these, so an excess-limit endorsement (e.g. death KRW 300m, property KRW 3bn) should be considered.
The compulsory limit covers only third-party (customer) loss. The owner's own lost revenue and business-interruption loss must be designed under a separate business-interruption (BI) policy or the BI endorsement of a property policy.
The duty to insure falls on the operator (usually the tenant), and the limit is confined to customer loss. Damage to the building itself and to other tenants must be combined via tenant fire liability to fill the gap.
The questions asked most when considering compulsory multi-use fire liability
Under Article 13-2 of the Special Act, operators in the 23 multi-use business types — snack/general/entertainment/cabaret restaurants (seating 100㎡+), karaoke, PC rooms, saunas/bathhouses, cinemas/theatres, academies, postnatal-care centres, micro-studios, indoor golf ranges and others — must insure by the date business begins.
General and snack restaurants are mandatory from a seating area of 100㎡ (66㎡ in a basement). Karaoke, PC rooms, entertainment/cabaret bars, saunas/bathhouses, micro-studios and postnatal-care centres are mandatory for all premises regardless of area, with exact application determined by the local authority or competent fire station at the business report.
The duty to insure falls on the operator (usually the tenant). However, since the compulsory limit covers third-party (customer) loss, damage to the building itself and to other tenants from a fire caused by the tenant's operation is usually handled separately via tenant fire liability.
The statutory minimums are KRW 150m per person for death/permanent disability, KRW 30m per person for injury (limited by grade), and KRW 1bn per occurrence for property damage. Real losses can exceed these, so cover can be extended with an excess-limit endorsement (e.g. death KRW 300m, property KRW 3bn); the exact limit and premium are confirmed after the insurer's underwriting.
The Act imposes fines of KRW 1m, 2m and 3m for the first, second and third offences. Proof of cover must also be submitted with the business report, so without it the permit itself can be suspended, and if an incident occurs while uninsured the owner bears the loss up to the compulsory limit directly.
The compulsory limit covers only bodily and property loss to third parties (customers); the owner's own lost revenue or business-interruption loss is not covered. Loss from closure must be designed under a separate business-interruption (BI) policy or the BI endorsement of a property policy.
The insurer calculates it based on business type, area, number of floors, fire-fighting facilities installed and incident history. Typical ranges are KRW 80,000–180,000/year for a general restaurant with 150㎡ seating, KRW 120,000–250,000/year for karaoke, and KRW 300,000–700,000/year for a sauna/bathhouse (gross 1,000㎡); the exact premium is confirmed after underwriting by insurers such as AIG, Chubb, DB, Hyundai, KB and Meritz.
