General Insurance Association of Korea: Investing 3.2 Trillion Won in Traffic Safety Would Generate 6.6 Trillion Won in Social Benefits

[Financial News] An analysis found that investing 3.2 trillion won in traffic safety over five years would generate approximately 6.6 trillion won in social benefits by reducing traffic accidents. The General Insurance Association of Korea (GIAK) urged the introduction of a Road Traffic Safety Special Account to secure stable funding for traffic safety, citing these expected benefits.
GIAK announced that it co-hosted a legislative discussion titled "A Paradigm Shift in Traffic Safety Budgets" with the National Assembly Traffic Safety Forum on the 21st at the Small Auditorium of the National Assembly Library of the Republic of Korea in Yeouido, Seoul.
As the decline in traffic accident fatalities has recently slowed, the need for prevention-focused traffic safety policies and stable funding has grown. The number of traffic accident fatalities fell from 2,551 in 2023 to 2,521 in 2024, but rose again to 2,549 last year.
Woo Seung-kuk, a division head at The Korea Transport Institute (KOTI), presented a proposal for introducing a Road Traffic Safety Special Account at the event. He explained that investing 6 billion won in traffic safety would reduce the number of casualties by one per 100,000 people.
The analysis found that introducing the special account and investing 3.2 trillion won over five years would generate approximately 6.6 trillion won in social benefits by reducing traffic accidents. As of 2025, Korea's road traffic fatality rate was also higher, at 4.9 deaths per 100,000 people, than the rates of 2.5 in the United Kingdom and 2.6 in Japan, which operate special accounts.
The event also highlighted the accident-prevention effects of advanced safety devices. Lim Dong-wook, a director at the Korea Transportation Safety Authority, said that operating a pedal misapplication prevention device for 227 people blocked the risk of abnormal sudden acceleration 3,628 times and reduced the frequency of misoperation by 53.4%.
When an AI safe-driving monitoring system was applied to 200 route buses, the accident rate fell by 74.2% and traffic signal violations declined by 40.1%. Lim stressed the need for financial and policy support to expand the distribution of advanced safety devices.
Sung Il-jong, representative of the National Assembly Traffic Safety Forum, said, "We must close the traffic safety gap between regions and secure stable investment funding by introducing the special account." Lee Byung-rae, president of GIAK, also stated, "The special account will serve as a reliable pillar for sustaining various traffic safety initiatives, including expanded support for advanced safety devices."
GIAK and the National Assembly Traffic Safety Forum plan to continue consultations with relevant ministries and experts based on the discussions held that day, in support of introducing the Road Traffic Safety Special Account. 
[email protected] Hong Ye-ji Reporter