The Financial Supervisory Service (FSS) has reported a 9.1% rise in insurance fraud, specifically in motor and long-term insurance, over the same period in 2025, reported the Chosunbiz.
Insurance fraud detected in the first half of this year was KRW620bn ($455m), and the number of people penalised also rose 5.6% to 53,865. Motor insurance and long-term insurance accounted for most of the detected cases, with motor insurance at KRW288bn, or 46.5% of the total, and long-term insurance at KRW264.5bn, which was an increase of KRW34.3bn from last year.
Some of the other insurance fraud cases detected include manipulated accident details, such as overclaiming insurance benefits at KRW379.8bn, or 61.3% of the total, followed by fabricated accidents at KRW108.1bn or 17.4% of the total and intentional accidents at KRW86.4bn or 13.9% of total.
By age group, people in their 60s accounted for 13,247 insurance frauds, accounting for 24.6% of the total, and this was followed by people in their 50s at 12,259 (22.8%), 40s at 9,619 (17.8%), and 30s at 8,399 (15.6%). By occupation, office workers were the most at 14,656, accounting for 27.2% of the total. Full-time homemakers followed at 5,855 (10.9%), then the unemployed and day labourers at 4,942 (9.2%), and motor transport workers at 2,246 (4.2%).