Seoul’s disaster damage could be third-largest in the world

A research result suggests that Seoul will likely suffer from the third-largest damage in the world in the event of a natural or social disaster. The study means that while Seoul has relatively high asset value, the South Korean capital is also highly exposed to risks of disasters.

According to the Korea Insurance Development Institute on Thursday, the British financial group Lloyd’s and Cambridge University City Risk Index based on an analysis of 301 major cities around the world showed Seoul has the third-highest risk after Taipei and Tokyo. The index is based on an estimation of economic damage that 18 risk factors, including natural disasters, cyberattacks, nuclear accidents, oil shocks and terrorism, can have on the cities.

The study suggests that Seoul has high risks of typhoons, oil shocks, and financial and capital market chaos. In the event of such disasters, Seoul will likely suffer from 103.5 billion U.S. dollars in damage between 2015 and 2025. Due to high risks of natural disasters, Taipei’s economic damage is estimated at 181.2 billion dollars. Tokyo is among the top 10 cities in 15 categories. Lloyd’s said that 21 of the top 50 high-risk cities are in Asia, adding the risks of cyberattacks, blackouts and nuclear accidents are growing.

Sung-Min Park min@donga.com