Jaseng Hospital has strongly denied allegations of insurance fraud as police have reportedly launched a raid over claims involving hundreds of billions of won. The hospital stated that the accusations are "unfounded" and emphasized its cooperation with the ongoing investigation.
According to police sources, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency executed a search warrant at Jaseng Hospital and the Jaseng Medical Foundation in Gangnam on the morning of July 9. Four insurance companies, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, have filed complaints against Jaseng Hospital for violating the Special Act on the Prevention of Insurance Fraud. The insurers allege that the hospital indiscriminately prescribed herbal medicine to traffic accident patients, regardless of their symptoms, resulting in fraudulent claims amounting to hundreds of billions of won.
In a statement released on the same day, Jaseng Hospital affirmed its commitment to cooperating with the investigation but insisted that the claims are inaccurate, stating that it is providing necessary documents to clarify the situation.
Specifically addressing the allegations of indiscriminately prescribing pre-manufactured herbal medicine to traffic accident patients, the hospital described these reports as "one-sided claims without objective evidence." A representative from Jaseng Hospital explained, "Herbal medicine is prescribed based on a comprehensive assessment of the patient's symptoms, constitution, medical history, and diagnostic results. All herbal medicine is prepared individually according to the patient's prescription."
The representative also noted that similar complaints and accusations have been made in the past, but investigations have consistently concluded with no charges or dismissals. To date, there have been eight cases of non-prosecution decisions related to similar allegations.
Finally, Jaseng Hospital stated that it is considering all possible legal actions, including charges of false accusations, against those who damage the reputation of the medical institution with false or distorted claims.
Meanwhile, it has been reported that complaints and dispute resolution requests to non-life insurance companies increased in the first quarter of this year. As conflicts over insurance payments rise, consumer dissatisfaction is also growing.
According to the General Insurance Association, the number of complaints received by non-life insurance companies in the first quarter reached 11,108, a 17.1% increase compared to the same period last year. Notably, complaints related to insurance compensation accounted for 8,224 cases, or 74.0% of the total, marking an 18.8% increase. Complaints specifically related to automobile insurance rose to 2,990, a 22.6% increase.
Industry experts attribute the rise in complaints to a combination of heightened consumer awareness of rights and the proliferation of generative AI.
* This article has been translated by AI.
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