Police have launched a forced investigation into Jaseng Hospital of Korean Medicine, which faces allegations of insurance fraud worth tens of billions of won.
The Financial Crimes Investigation Unit of the Seoul Metropolitan Police Agency's Metropolitan Investigation Division said on the 9th that it is executing search and seizure warrants against Jaseng Hospital of Korean Medicine and its medical foundation over suspected violations of the Special Act on Insurance Fraud Prevention. This marks the first police raid related to the case.
Four insurers, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, filed a criminal complaint with police in April, alleging that the hospital defrauded insurers of tens of billions of won in insurance payouts by indiscriminately prescribing pre-manufactured herbal medicine to traffic accident patients. Officials of the hospital and its medical foundation were reportedly named as defendants in the complaint at the time.
Through the raid, police plan to secure prescription records and other evidence and examine whether the foundation systematically directed the fraudulent collection of insurance payouts.
Meanwhile, Jaseng Hospital of Korean Medicine issued a statement, saying, "The claims that we indiscriminately prescribed factory-made, pre-manufactured herbal medicine to traffic accident patients, or that we are suspected of insurance fraud worth tens of billions of won, are one-sided allegations that are completely contrary to the facts."
