What is Environmental Liability Insurance Phase 2?
Environmental Liability Insurance is mandatory coverage for facilities handling hazardous chemicals or emitting air/water pollutants, compensating third parties for damage from pollution incidents. Korea's Ministry of Climate, Energy and Environment is rolling out "Phase 2" reforms that ease the premium burden on covered facilities while strengthening victim protection.
Facilities Subject to Coverage
Failing to verify coverage requirements before starting a new business or expanding facilities can result in fines once the business begins operating without insurance.
SME Burden Relief Measures
1. Rationalized Premium Calculation
Reforms apply differentiated rates based on revenue scale and pollutant emission volume, lowering premiums for smaller facilities.
2. Premium Support for Environmentally Excellent SMEs
SMEs certified as environmentally excellent can receive 50-70% support for premiums exceeding 0.3% of their 3-year average revenue, up to a maximum of KRW 30 million.
Practical Checklist
Important Notes
Contact KITIM
KITIM supports SMEs with environmental regulation compliance, environmental liability insurance consulting, and premium support program applications. Contact us through [KITIM Contact](/contact) for a consultation.