South Korea’s National Health Insurance Service (NHIS) appealed to the Supreme Court in its ongoing lawsuit seeking to hold cigarette manufacturers liable for smoking-related healthcare costs, challenging an appellate ruling that rejected key liability claims. The NHIS argues the lower court erred in concluding that the health risks and addictive nature of smoking were widely understood in the 1960s and 1970s, contending that tobacco companies concealed scientific evidence and operated in a period of limited regulatory oversight. The case focuses on recovering medical expenses tied to smoking-related cancers, including lung and laryngeal cancers, with the insurer asserting that cigarette manufacturers knowingly sold harmful and addictive products without adequately disclosing risks. The NHIS is requesting a full Supreme Court bench review and public hearing, citing the case’s broad public health and financial implications.
Tag: Health Insurance
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Korea Health Insurance Loses Appeal Against Tobacco Cos.
South Korea’s National Health Insurance Service (NHIS) lost its appeal seeking compensation from major tobacco companies after the Seoul High Court upheld a lower court ruling in favor of KT&G, Philip Morris Korea, and British American Tobacco Korea today (January 15). The court agreed that NHIS lacked legal standing to claim damages, ruling that insurance payouts made to smokers with cancer merely fulfilled statutory obligations and did not constitute a legally protected interest that could support a compensation claim.
The lawsuit, originally filed in 2014, sought 55.3 billion won ($37.6 million) to recover health insurance costs for smoking-related lung and laryngeal cancer patients, arguing tobacco firms should be held liable for the financial burden imposed on the public health system. Both the lower and appellate courts rejected claims that cigarettes were defectively designed or misleadingly marketed, and found that smoking was not the sole cause of cancer. While acknowledging the growing medical costs linked to smoking—estimated at 3.8 trillion won ($2.6 billion) annually by 2023—the appellate court ordered NHIS to bear appeal costs. NHIS said it plans to take the case to the Supreme Court, framing the issue as one of public health accountability and constitutional social rights.