This is a new type of insurance, run by the state, which is designed solely for the welfare of the insured, with no consideration for profit. The insurance amount is limited to 10 million won for the benefit of low-income people. The contract procedure is simple so that expenses are small. The premiums are low so that as many people as possible can be benefited by the system. But the disbursements made to the policy holders are high.

Communications insurance consists of five kinds of insurance: term insurance and special guarantee insurance, both designed for cases of accidents; education insurance, designed to help parents to finance their children's education; welfare insurance; and endowment insurance, designed to help provide for one's old age.