It's an urban myth that Koreans believe that urban myth.
It’s strange that in 2018, superstitious beliefs without any evidence are widely believed. It makes me wonder what kind of bizarre superstitions will exist 100 years from now.
In my experience they do their best to propagate the idea that Koreans believe this myth.
I have yet to meet a Korean who wouldn't defend fan death.
Maybe it is like the Australian drop-bear.
I lived in Incheon for 2 years and can confirm that belief in fan-death is definitely not uncommon. I even have a couple Korean friends who can rationally explain why fan-death makes no sense but still reflexively leave the window open when going to sleep with a fan on.