Kathmandu. South Korea plans to start producing climate insurance in 2026 to help foreign workers who cannot work during extreme heat.
Developed jointly by the government and the insurance industry, the product will compensate workers who cannot work in the outside sector based on official heat wave warnings. This insurance scheme is aimed at day workers engaged in public external projects, who are engaged in retirement plans.
Under this insurance scheme, local governments must stop working before 1 pm on heat wave days to be eligible for coverage. The payment will be based on four hours’ salary. It has been set at $62.25 for full coverage or about $49.38 for 80 percent coverage.
The initiative is based on an agreement reached between the Ministry of Environment and the Non-Life Insurance Association of Korea in April.
A pilot program has been scheduled for the first half of 2026. In which the government subsidy will cover the insurance premium.
The scheme aims to reduce financial risk for vulnerable workers affected by rising temperatures, the ministry said.
