Many Korean’s ride their bikes for recreational purposes on the weekends, rather than using them to commute. Mainly the lack of bike roads and parking discourages them from using their bikes. Equally important, is protecting themselves from accidents.

Last year 69 people in Korea died in 1,374 bike accidents. Law books deem that a bike is a vehicle too, subjecting it to many regulations governing vehicles. If a bike is involved in an accident the rider is held accountable. Hence, the rider has to settle the case with his/her own money to avoid criminal prosecution. Therefore, the provincial city of Changwon and bike advocacy groups have urged the introduction of bike insurance.

The Financial Supervisory Commission has reportedly asked the Korea Insurance Development Institute to calculate the risk factors for bike insurance. From later this year, Koreans can purchase bike insurance.

In 1997, bike insurance was introduced, but it was later abolished to due mounting deficit.