South Korea to launch heat insurance for outdoor workers in 2026

The policy targets day labourers involved in public outdoor projects.

South Korea plans to launch a climate insurance product in 2026 to support outdoor workers unable to work during extreme heat, reported Korean news agency Pulse. 

Developed jointly by the government and the insurance industry, the product will provide compensation based on official heatwave warnings.

The policy targets day labourers involved in public outdoor projects who are enrolled in retirement plans. 

Under the plan, local governments must suspend work before 1 p.m. on heatwave days to qualify for coverage. Payouts will be based on four hours of wages: $62.25 (KRW84,800) for full coverage or ~$49.38 (KRW67,800) for 80%.

The initiative follows a memorandum signed in April by the Ministry of Environment and the General Insurance Association of Korea.

A pilot program is set for the first half of 2026, with government subsidies covering insurance premiums.

The Ministry said the insurance is halfway through development and aims to reduce financial risks for vulnerable workers impacted by rising temperatures.