Korea Health Insurance Corporation lose 2nd instance lawsuit with KT&G

Korean Health Insurance Corporation loses second instance lawsuit against KT&G and other tobacco companies

The Seoul High Court held that the first instance’s refusal to recognize the corporation’s direct claim against the tobacco company was not clearly illegal; Even if it is acknowledged that there is an epidemiological causal relationship between smoking and lung cancer, it is difficult to determine an individual level causal relationship based on this. The Korea Health Insurance Corporation stated that it will continue to appeal to the Supreme Court.

Quick overview of the key points of this lawsuit

• The Civil 6-1 Division of the Seoul High Court upheld the first instance verdict, while the National Health Insurance Corporation lost the second instance.
• The defendants include KT&G, Philip Morris Korea, and British American Tobacco Korea.
• The claim amount is 53.3 billion Korean won (approximately 36.24 million US dollars).
• The claim is based on the medical insurance treatment expenses of 3465 patients diagnosed with lung or throat cancer who meet the criteria for long-term smoking.
• The court believes that it is difficult for the corporation to exercise the “direct claim right” for damages against the tobacco company, and finds it difficult to determine individual causal relationships.
• The Health Insurance Corporation will submit the case to the Supreme Court to continue seeking a final judgment.

The Civil 6-1 Division of the Seoul High Court held that the first instance judgment against the plaintiff was not clearly illegal and upheld the first instance conclusion

The case was filed by the National Health Insurance Corporation in April 2014. The corporation stated that it would hold tobacco manufacturing, import, and sales companies responsible for the “social responsibility” of smoking hazards, and proposed the purpose of preventing the outflow of medical insurance expenditures and promoting national health. This is the first lawsuit filed by a South Korean public institution against a tobacco company.
In terms of compensation amount, the corporation has requested 53.3 billion Korean won (approximately 36.24 million US dollars) in damages for 3465 patients. These patients were diagnosed with lung or throat cancer and met the criteria of “smoking for more than 20 years and taking one pack per day” or “smoking for more than 30 years”; The claim amount corresponds to the one-year health insurance treatment fee paid by the company to the relevant patients between 2003 and 2012.

The first instance judgment was made in November 2020, and the first instance court rejected the request of the Korea Health Insurance Corporation

1. The corporation is not a subject that can directly request compensation for damages as a “victim”, and the insurance premiums paid by it can only exercise the right to claim compensation;
2. At the same time, the first instance did not recognize the causal relationship between smoking and cancer incidence, nor did it acknowledge the design or labeling flaws of tobacco, nor did it accept claims about tobacco companies reducing or concealing addiction.

The corporation appealed against the first instance judgment and submitted the latest research, expert opinions, and statements from smoking victims as evidence; Jung Ki seok, the chairman of the corporation, also made a statement during the final debate.

The second trial also did not find any design defects in the tobacco products involved in the case

The second instance court believes that the first instance judgment of “not recognizing the plaintiff’s direct right to request” is difficult to call illegal; And it is pointed out that even if the epidemiological causal relationship between smoking and lung cancer is recognized, it is difficult to determine individual causal relationships between individual smoking facts and the occurrence of lung cancer based on this. Further investigation is needed on pre smoking health status, disease status, and family history.

The National Health Insurance Corporation stated that it will submit the case to the Supreme Court to continue seeking a final judgment; After the second trial verdict, Jung Ki-seok stated that he will prepare various strategies with the consciousness of “retrial” and continue to promote the appeal trial.

Reference: “암 발생 책임져야” 건보공단이 담배회사에 제기한 500억 소송, 2심도 패소 – 조선비즈

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