SOMA Law Group (SOMA) has represented a U.S. citizen heir in an insurance claim arising from a fatal traffic accident in Korea. Acting under a full mandate from the client, SOMA reviewed the insurer's calculation of the payout, negotiated with the insurer, prepared the claim documents, assessed foreign exchange reporting requirements and remitted the insurance proceeds to the United States. The entire process was completed without the client travelling to Korea.
The deceased died in a traffic accident in Korea, and the right to claim the resulting insurance proceeds passed by inheritance to the client, a U.S. citizen living in the United States. From abroad, the client had no practical way to follow the Korean claims process, understand how the payout was calculated, or judge whether the amount offered by the insurer was reasonable. The client entrusted the entire insurance claim to SOMA.
Reviewing the insurer's calculation and negotiating the payout
Insurance payouts for a death in a Korean traffic accident are generally calculated across several heads, such as compensation for emotional distress, lost future earnings and funeral expenses. The final figure depends on the basis applied to each head and on the allocation of fault. An heir living overseas who receives the insurer's breakdown will often find it difficult to tell how each amount was reached.
SOMA reviewed the insurer's calculation item by item, assessed whether the amounts were appropriate, and explained and discussed its findings with the client. On the basis of that review, SOMA negotiated with the insurer. The client was able to decide whether to accept the payout with a clear understanding of each item and of how the negotiations had progressed.
Preparing the claim documents for a U.S. citizen heir
To claim insurance proceeds in Korea, an heir must submit documents establishing the line of succession and confirming the heir's own intent. A U.S. citizen is treated as a foreign national under Korean law and cannot obtain a Korean seal certificate, and may also need to prove that the person named in the Korean family relationship register is the same person named in the U.S. passport. After confirming the insurer's requirements, SOMA prepared the necessary documents together with the client.
SOMA provided the client with a list of the documents to be prepared in the United States and guidance on completing them, and managed the timetable for issuance and notarisation around the time difference.
Remitting the proceeds to the United States and foreign exchange reporting
Once the insurer paid the claim, the proceeds still had to reach the heir in the United States safely. When an heir living overseas sends inherited funds out of Korea, a report or confirmation under the Foreign Exchange Transactions Act may be required, depending on the amount and the method of remittance. SOMA assessed whether a foreign exchange report was required for this remittance and, on that basis, transferred the proceeds to the client's U.S. bank account.
SOMA completed every step — from the claim and the review of the calculation to negotiation, receipt and overseas remittance — without the client needing to visit Korea at any point.
SOMA's international inheritance practice
SOMA acts for heirs residing outside Korea across the Korean succession process, including tracing inherited assets, the division of estates, claims for inherited bank deposits and insurance proceeds, and the renunciation and qualified acceptance of inheritance. Related matters include:
The deceased died in a traffic accident in Korea, and the right to claim the resulting insurance proceeds passed by inheritance to the client, a U.S. citizen living in the United States. From abroad, the client had no practical way to follow the Korean claims process, understand how the payout was calculated, or judge whether the amount offered by the insurer was reasonable. The client entrusted the entire insurance claim to SOMA.
Reviewing the insurer's calculation and negotiating the payout
Insurance payouts for a death in a Korean traffic accident are generally calculated across several heads, such as compensation for emotional distress, lost future earnings and funeral expenses. The final figure depends on the basis applied to each head and on the allocation of fault. An heir living overseas who receives the insurer's breakdown will often find it difficult to tell how each amount was reached.
SOMA reviewed the insurer's calculation item by item, assessed whether the amounts were appropriate, and explained and discussed its findings with the client. On the basis of that review, SOMA negotiated with the insurer. The client was able to decide whether to accept the payout with a clear understanding of each item and of how the negotiations had progressed.
Preparing the claim documents for a U.S. citizen heir
To claim insurance proceeds in Korea, an heir must submit documents establishing the line of succession and confirming the heir's own intent. A U.S. citizen is treated as a foreign national under Korean law and cannot obtain a Korean seal certificate, and may also need to prove that the person named in the Korean family relationship register is the same person named in the U.S. passport. After confirming the insurer's requirements, SOMA prepared the necessary documents together with the client.
SOMA provided the client with a list of the documents to be prepared in the United States and guidance on completing them, and managed the timetable for issuance and notarisation around the time difference.
Remitting the proceeds to the United States and foreign exchange reporting
Once the insurer paid the claim, the proceeds still had to reach the heir in the United States safely. When an heir living overseas sends inherited funds out of Korea, a report or confirmation under the Foreign Exchange Transactions Act may be required, depending on the amount and the method of remittance. SOMA assessed whether a foreign exchange report was required for this remittance and, on that basis, transferred the proceeds to the client's U.S. bank account.
SOMA completed every step — from the claim and the review of the calculation to negotiation, receipt and overseas remittance — without the client needing to visit Korea at any point.
SOMA's international inheritance practice
SOMA acts for heirs residing outside Korea across the Korean succession process, including tracing inherited assets, the division of estates, claims for inherited bank deposits and insurance proceeds, and the renunciation and qualified acceptance of inheritance. Related matters include: