President Lee Jae-myung on the 15th mentioned the issue of a Korean medicine hospital that is under police investigation over recent insurance fraud allegations during a work briefing by the Financial Services Commission.
During the morning briefing, President Lee asked Financial Supervisory Service Governor Lee Chan-jin whether the Financial Supervisory Service manages insurance fraud. He then said he had seen recent news about Korean herbal medicine insurance fraud and asked, "Was it reported by the Financial Supervisory Service?" Lee replied, "We are providing overall support."
When President Lee said, "It looked like an insurance company filed the report," Lee responded, "We compile information and such from the insurance companies and provide it to investigative authorities."
The Korean herbal medicine insurance fraud President Lee referred to is understood to mean Jaseng Hospital of Korean Medicine. In Apr., Samsung Fire & Marine Insurance, Hyundai Marine & Fire Insurance, KB Insurance, and DB Insurance(005830), four non-life insurers in total, submitted a complaint to police alleging that Jaseng Hospital of Korean Medicine unlawfully took hundreds of billions of won in insurance payouts by mass-prescribing pre-made herbal medicine to traffic accident patients. A total of 23 people, including the chair of the Jaseng Medical Foundation and the heads of 21 Jaseng Hospital of Korean Medicine locations nationwide, were reportedly accused.
The Seoul Metropolitan Police Agency's Financial Crime Investigation Unit on the morning of the 9th conducted raids on five locations, including Jaseng Hospital of Korean Medicine and the Jaseng Medical Foundation in Gangnam District, Seoul.
Jaseng Hospital of Korean Medicine said in a statement that it compounds herbal medicine based on individual patients' prescriptions in accordance with relevant laws and medical standards, rebutting that the insurance fraud claim is not true.