Police have launched a compulsory investigation into Jaseng Hospital of Korean Medicine, which is suspected of defrauding insurers of hundreds of billions of won by indiscriminately prescribing herbal medicine to traffic accident patients, accelerating the probe.
According to the medical community on the 9th, the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency's Metropolitan Investigation Team sent investigators to execute search-and-seizure warrants at five locations on the morning of that day, including Jaseng Hospital of Korean Medicine and Jaseng Medical Foundation in Gangnam-gu.
This is the first time police have conducted a raid since four insurers, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, filed a complaint in April alleging violations of the Special Act on the Prevention of Insurance Fraud, claiming that Jaseng Hospital of Korean Medicine had pocketed hundreds of billions of won in insurance payouts by prescribing pre-manufactured herbal medicine in bulk to traffic accident patients. According to reports, the complaint named 23 defendants, including Park Byung-mo, chairman of Jaseng Medical Foundation, and the directors of 21 Jaseng Hospitals of Korean Medicine across the country.
According to a Ministry of Land, Infrastructure and Transport notice, medical staff must individually prescribe herbal medicine according to the symptoms and conditions of traffic accident patients. Through the raid on that day, police plan to secure prescription records and examine whether there were signs of organized insurance fraud at the foundation level.
However, while acknowledging the raid, the hospital rebutted the allegations of insurance fraud and other claims as untrue.
Jaseng Hospital of Korean Medicine said in a statement that day, "As a principle, herbal medicine is prescribed individually, taking into comprehensive consideration the patient's symptoms, constitution, medical history, and diagnostic results," adding, "We prepare herbal medicine based on individual prescriptions for each patient in accordance with relevant laws and medical standards." It continued, "In the past, similar complaints and accusations from insurers were repeatedly filed, but investigative agencies issued findings of no charges or decisions not to refer the cases," and added, "Regarding the false complaints and claims contrary to the facts, we plan to review all possible legal measures against those involved, including charges of false accusation."
