Korea to reinforce EV safety coverage in 2026 amid rising fire risks

Firefighters respond to a fire involving an electric vehicle that was charging in an underground parking lot at an apartment complex in Asan, South Chungcheong Province, Nov. 14, 2024. Yonhap

Compensation systems related to electric vehicle (EV) safety will be reinforced in 2026 as fires and explosions involving EVs continue to rise, insurance industry officials said Wednesday.

According to the Korea Life Insurance Association and the General Insurance Association of Korea, mandatory liability insurance covering accidents at EV charging facilities will take effect on the first day of the new year.

The insurance will cover bodily injury and property damage caused by fires, explosions or electric shocks at charging stations, and will be mandatory for EV charging operators as well as apartment complexes and other entities required to install chargers. Failure to comply will result in a fine of 2 million won ($1,400).

Coverage limits will be set at up to 150 million won per person for bodily injury and up to 1 billion won per accident for property damage.

The policy will extend beyond conventional fire incidents to include cases in which charging connectors are damaged due to overheating or electrical malfunctions, resulting in damage to vehicles.

Separately, an additional compensation mechanism will be established to cover losses from EV fires during charging or parking that exceed the limits of private insurance held by vehicle owners.

Losses not covered by private policies will be compensated through a fund jointly financed by the government and EV manufacturers.

Under the scheme, compensation will be capped at 10 billion won per accident, with coverage available for up to three years after the delivery of a new vehicle.

The initiative is intended to address safety concerns that have slowed EV adoption, with the government expecting the measure to help accelerate the rollout of charging infrastructure.