Disaster Condolence Money | Supreme Court Judgment Holding That, Where the Disability Grade Has Changed, a Prior Payment Constitutes Only Partial Performance

The first-instance court partially accepted the plaintiff's claim.

It found that the existing amount paid by the defendant Corporation constituted only partial performance of the condolence money corresponding to the final disability grade (Grade 9).

Accordingly, it determined that an obligation existed to pay additional condolence money based on the newly confirmed disability grade.

The Seoul High Court (Judgment of June 23, 2022, 2021 Nu 62920) held as follows.

Accordingly, it determined that the amount paid by the defendant in 2017 has effect only as partial performance of the disaster condolence money actually payable, and that an obligation to pay the full amount under the final disability grade (Grade 9) remains.

Under Article 39-3(1)(iv) of the former Coal Industry Act and Article 41(3)(iv) of its Enforcement Decree (hereinafter the “provision at issue”), disaster condolence money is paid to a worker whose disability grade is confirmed as of the mine closure date.

Where a pneumoconiosis worker has already received the full disaster condolence money under an existing disability grade and the disability grade is subsequently changed due to a worsening of the condition, the principle is, by analogous application of Article 58(3)(ii) of the Enforcement Decree of the Industrial Accident Compensation Insurance Act, to pay only the difference after deducting the number of days previously paid.

However, the purport was that a different view should be taken where the disability grade has changed while the worker had not received the disaster condolence money under the existing disability grade.

The Supreme Court stated as follows.

In other words, the conclusion was that if an amount has already been paid, it should be regarded as “partial performance of the condolence money under the changed disability grade,” and it is appropriate to recalculate the full amount under the new grade and then pay the difference.

This judgment is a meaningful decision that set the standard for the payment of disaster condolence money to pneumoconiosis workers.

1. Reaffirmation of the Principle Based on the Final Disability Grade
It made clear that disaster condolence money must be calculated based on the point at which the final disability grade is confirmed, not on the initial diagnosis.

2. Establishment of the Partial Performance Theory
It established the standard that an amount already paid constitutes merely partial performance, and that recalculation under the new grade standard and payment of the difference are required.

3. Clarification of the Limits of Analogous Application
It clarified that, because the deduction provision of the Enforcement Decree of the Industrial Accident Compensation Insurance Act is intended to prevent duplicate payment, it cannot be applied by analogy where there has been no prior payment.