South Korea's FSC Cracks Down on Insurance Fraud, Raids Hospital Network in Early July Over 1.1 Trillion Won in Claims

According to Yonhapinfomax, South Korea's Financial Supervisory Service (FSC) led a coordinated crackdown on insurance fraud in early July, targeting major acupuncture hospitals and medical facilities suspected of claim manipulation. Seoul Metropolitan Police conducted searches at five locations linked to Jaseng Acupuncture Hospital and affiliated entities on suspicion of fraudulently prescribing expensive herbal medicines to traffic accident patients to claim hundreds of billions of won. Major insurers including Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance jointly pursued the case. The FSC detected improper insurance claims practices and coordinated with insurers to compile evidence for investigation referral. Detected insurance fraud reached 1.1571 trillion won in the prior year, with authorities estimating total fraud—including undetected cases—at approximately 9 trillion won.
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