Korean Law in English
Laws › Commercial Act › SECTION 5 Liability Insurance

Commercial Act — Article 723 (Notice of Repayment, etc. by Insured and Payment of Insured Amount)

상법 제723조

This English translation is based on the Korean text effective 2018-12-19. The Korean law has since been amended (current version effective 2026-09-10) — check the Korean original.

(1) When the insured has made a payment to, granted approval for, or compromised with a third party, or the insured's obligation toward a third party has been settled by a judgment, the insured shall, without delay, give a notice thereof to an insurer.

(2) Unless otherwise agreed as regards the period, an insurer shall pay the insured amount within ten days of the receipt of a notice under the preceding paragraph.

(3) Notwithstanding an agreement whereby an insurer is exonerated from liability when the insured has made, without the consent of the insurer, a payment to, granted approval for, or compromised with a third party, the insurer shall not be exonerated from liability to compensate unless such act is grossly unreasonable.

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