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Seoul to compensate victims of sinkhole that killed motorcyclist, injured driver

Published: 07 Jan. 2026, 15:45

The site of a sinkhole is closed off at an intersection near Seoul Daemyeong Elementary School in Gangdong District, eastern Seoul, on March 24, 2025. [NEWS1]

Seoul will begin compensating victims of a fatal sinkhole that opened in Gangdong District, eastern Seoul, in March 2025, but payments will be limited to under 100 million won ($69,000) per person due to findings that the accident was caused by a mix of "natural and human factors."

The Central Underground Accident Investigation Committee under the Ministry of Land, Infrastructure and Transport delivered its final report to the Seoul Metropolitan Government on Dec. 30, 2025, the city said on Tuesday.

The report follows a months-long investigation into the sinkhole that opened at an intersection near Seoul Daemyeong Elementary School in Gangdong District, eastern Seoul, on March 29, 2025. The collapse killed a motorcyclist and injured another driver.

Based on the findings, Seoul plans to distribute compensation through a liability insurance policy for public infrastructure, operated by the Local Finance Association. The liability insurance policy for public infrastructure pays up to 100 million won per incident.

"The insurer will decide later how to divide compensation of up to 100 million won between the two victims," a Seoul city official said. "We will work closely with the insurer to ensure the victims receive compensation quickly."

In addition to the insurance payout, the city previously provided 55 million won to the family of the deceased to cover funeral expenses through its disaster management fund and citizen safety insurance. The injured victim’s medical expenses were covered by a private health insurance policy.

The site of a sinkhole is closed off on March 31, 2025, at an intersection near Seoul Daemyeong Elementary School in Gangdong District, eastern Seoul. [NEWS1]

The insurer that paid those expenses may later file a recourse claim against the city. Factoring in both sources, each victim is expected to receive about 77.5 million won on average.

The relatively limited payout reflects the investigation’s conclusion that the sinkhole was not caused by direct negligence but by a combination of "natural and human factors."

The committee’s report found that underground cracks and a wedge-shaped block of loose soil, which inspectors did not find during the ground check, directly caused the accident. These cracks, called discontinuities, are gaps in soil or rock layers. When three or more of them cross each other, they can form a triangle-shaped chunk of ground.

Wedge-shaped soil blocks have weak support underneath and along the sides, and they are prone to shifting downward under their own weight, according to the investigation committee. In this case, the pressure on the block became too great, leading to a collapse.

Daewoo Engineering & Construction, which was working on the Line 9 subway extension, and the Korea Expressway Corporation, which was building the Sejong–Pocheon Expressway nearby, are not expected to face direct liability, as the report did not name either firm as a direct cause of the collapse.

Still, the committee noted that long-term sewage leaks, falling groundwater levels and structural limitations in the pipe-jacking method used in nearby projects may have indirectly contributed to the ground instability.

Firefighters prepare to begin search and rescue operations at an intersection near Seoul Daemyeong Elementary School in Gangdong District, eastern Seoul, on March 24, 2025, after a sinkhole opened in the area. [YONHAP]

“The report lists issues related to the contractors as indirect causes,” a Seoul city official said. “We plan to file a recourse claim against Daewoo Engineering & Construction and the Korea Expressway Corporation for the compensation paid to the victims.”

With the investigation report now finalized, Seoul began notifying the surviving victim and the families of the two victims of the findings and the next steps for compensation on Tuesday.

If the victim believes the insurance payout is insufficient or they suffered property damage, the city will help them seek additional relief through a state compensation review process. Officials also plan to provide information and administrative support to ensure those impacted can navigate the system smoothly.

“We will make sure compensation is provided quickly and responsibly within the limits of the system,” said Han Byung-yong, head of Seoul's Disaster and Safety Office.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY MOON HEE-CHUL [[email protected]]