Police have launched a compulsory investigation into Jaseng Hospital of Korean Medicine over allegations of an insurance fraud scheme worth tens of billions of won.
The financial crime investigation unit of the Seoul Metropolitan Police Agency's violent crime unit began executing search and seizure warrants on the morning of the 9th at Jaseng Medical Foundation and Jaseng Hospital of Korean Medicine in Gangnam District, Seoul, on suspicion of violating the Special Act on the Prevention of Insurance Fraud.
Earlier, four insurers, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, filed a police complaint against Jaseng Hospital of Korean Medicine on suspicion of violating the Special Act on the Prevention of Insurance Fraud. The insurers were reported to have claimed that Jaseng Hospital of Korean Medicine indiscriminately prescribed factory-prepared herbal medicine to traffic accident patients and siphoned off insurance payouts worth tens of billions of won.
Through the search and seizure, police plan to secure prescription records and examine whether there were foundation-level instructions for an organized scheme to embezzle insurance money.
Jaseng Hospital of Korean Medicine rebutted that the allegations were a one-sided claim without objective basis. The hospital said it compounds herbal medicine based on prescriptions tailored to each patient in accordance with relevant laws and medical standards, making batch manufacturing and batch administration structurally impossible.
Jaseng Hospital of Korean Medicine also said that although insurers have repeatedly filed complaints and accusations, a total of eight similar cases have so far resulted in non-referral decisions (no charges).
Jaseng Hospital of Korean Medicine said, "The fact that some insurers keep raising the same issues and continuing to file complaints may constitute an abuse of the right to file complaints," and added, "We express deep concern that this could undermine normal medical treatment at medical institutions and negatively affect patients' freedom to choose their care."
It continued, "We take seriously acts that damage the honor and trust of medical institutions through false or distorted claims," and added, "We plan to actively consider all possible legal actions, including charges of false accusation, against those involved for false complaints and claims that are contrary to the facts."