Compensation Litigation for Psychological Damages Related to the May 18 Democratic Movement : Evaluation and Challenges

Victims of the May 18 Democratic Movement (the “Movement”) were unable to receive monetary compensation for ‘psychological damages’ incurred in connection with the Movement due to Article 16-2 of the May 18 Compensation Act. This article provides that ‘judicial conciliation’ under the Civil Procedure Act is deemed established when the victims agree to compensation payments. However, on May 27, 2021, the Constitutional Court of Korea ruled that prohibiting claims for state compensation for psychological damages merely because victims agreed to compensation decisions corresponding to direct and in-direct damages without proper redress for psychological damages constituted an excessive restriction on the right to state compensation, thereby violating the Constitution. With the Constitutional Court’s decision declaring the ‘judicial conciliation’ provision of the May 18 Compensation Act unconstitutional, a path for legal remedies for psychological damage claims, which had previously been blocked, was opened for the victims of the May 18 Democratic Movement. This paper examines the legislative history, evolution, and current status of 8th compensation proceedings under the May 18 Compensation Act, which allowed victims of the May 18 Democratic Movement to receive compensation. It also delves into the significance and issues of the ongoing 8th round of compensation as of 2025. Further, it explores the Constitutional Court’s rulings in 2018 (Democratization Compensation Act) and 2021 (May 18 Compensation Act) that declared the ‘judicial conciliation’ provisions unconstitutional, analyzing their legal and societal implications. Additionally, this paper reviews issues raised in subsequent lawsuits for psychological damages related to the May 18 Democratic Movement, including discrepancies in the amounts of damages awarded by courts, the starting point for the statute of limitations, and the starting point of the statute of limitations for family members’ compensation claims.