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Court Rejects State Insurer's Lawsuit against Tobacco Companies

Written: 2020-11-20 13:50:31Updated: 2020-11-20 14:01:24

Court Rejects State Insurer's Lawsuit against Tobacco Companies

Photo : YONHAP News

Anchor: Following a six-year legal battle, a Seoul court rejected a compensation suit filed by South Korea's state health insurer against major tobacco companies. Calling the ruling "shocking and regrettable," the agency said it will consider an appeal.
Choi You Sun reports.

Report: In April 2014, the National Health Insurance Service(NHIS) filed a lawsuit against the country's three major tobacco companies, seeking around 53 billion won in compensation.

The NHIS argued that KT&G, the leading domestic producer, and the local units of two foreign companies - British American Tobacco and Philip Morris - are responsible for medical expenses incurred by lung cancer patients with a history of smoking.

The medical bills date between 2003 and 2013.

After a six-year legal battle, the Seoul Central District Court on Friday rejected the state health insurer's compensation claim, saying its insurance spending is in accordance with a relevant law and that there is no direct link to the companies.

The court also said there is no clear causal relationship between smoking and lung cancer, adding other factors, such as individual lifestyle, genetics and job-related characteristics, cannot be ruled out.

With the latest ruling, there has yet been a successful legal case that recognizes damage from smoking in South Korea.

Expressing shock and regret over the ruling, NHIS President Kim Yong-ik said the agency will consider an appeal.

The cigarette companies, including KT&G and BAT Korea, welcomed Friday's ruling, vowing to continue making contributions in society.
Choi You Sun, KBS World Radio News.

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