South Korea's Financial Supervisory Service (FSS) supported major insurers in prosecuting Jaseng Hospital of Korean Medicine for alleged insurance fraud. In April, Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance jointly sued Jaseng Hospital, alleging the facility prescribed overpriced pre-manufactured herbal medicine indiscriminately to traffic accident patients and fraudulently claimed hundreds of billions of won in insurance payouts. The FSS identified improper claims patterns at some Jaseng locations and coordinated insurers to submit investigation requests simultaneously. Early this month, the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit raided five locations including the Gangnam-gu Jaseng Hospital and Jaseng Medical Foundation. Insurance fraud detected in South Korea reached 1.1571 trillion won last year, with the government estimating total fraud including undetected cases at approximately 9 trillion won.
Four Insurers Sue Jaseng Hospital in April
In April, Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance filed a joint lawsuit against Jaseng Hospital of Korean Medicine. The insurers alleged the hospital prescribed pre-manufactured expensive herbal medicine indiscriminately to traffic accident patients, fraudulently claiming hundreds of billions of won in insurance payouts. The FSS identified evidence of improper insurance claims at some Jaseng Hospital locations and directed the insurers to compile relevant materials and file simultaneous investigation requests.
Police Raid Five Jaseng Locations Early This Month
Early this month, the Seoul Metropolitan Police Agency's Financial Crime Investigation Unit conducted search warrants at five locations. The raided sites included the Gangnam-gu Jaseng Hospital of Korean Medicine and the Jaseng Medical Foundation. The FSS also confirmed it is investigating payback practices involving non-covered medical expenses at some nursing hospitals treating cancer patients.
Fraud Detection Reached 1.15 Trillion Won Last Year
Insurance fraud detected in South Korea totaled 1.1571 trillion won last year, an amount that has increased annually. The government estimates total insurance fraud, including undetected cases, at approximately 9 trillion won. FSS Governor Lee Chan-jin expressed strong commitment to eradicating insurance fraud and other financial crimes affecting public welfare since taking office last year. On the 15th, Lee reaffirmed the intensified insurance fraud crackdown during a presidential briefing.
Korea Non-Life Insurance Association Advances Traffic Accident Analysis Program
The Korea Non-Life Insurance Association is advancing the Korean version of the MADI-MO traffic accident analysis program to scientifically prove habitual and malicious auto insurance fraud. The insurance industry is raising its internal response capacity. Implementation of the '8-week rule' to manage long-term treatment exceeding eight weeks for minor injury patients remains pending.
FAQ
What did the four insurers allege against Jaseng Hospital in April?
Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance alleged Jaseng Hospital of Korean Medicine prescribed pre-manufactured expensive herbal medicine indiscriminately to traffic accident patients and fraudulently claimed hundreds of billions of won in insurance payouts.
How much insurance fraud was detected in South Korea last year?
Insurance fraud detected in South Korea reached 1.1571 trillion won last year. The government estimates total insurance fraud, including undetected cases, at approximately 9 trillion won.
