Police Raid Jaseng Korean Medicine Hospital Over Billion-Dollar Insurance Fraud Allegations

Police have initiated a compulsory investigation into Jaseng Korean Medicine Hospital, which faces accusations of insurance fraud amounting to tens of billions of won. The Seoul Metropolitan Police Agency's Gwangsu Unit, specializing in financial crimes, began searching and seizing documents at the Jaseng Medical Foundation and the Jaseng Korean Medicine Hospital in Gangnam-gu on the morning of the 9th. This marks the first compulsory measure taken in the case.

In April, four insurance companies, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, filed a complaint with the police. They alleged that Jaseng Korean Medicine Hospital had been fraudulently obtaining hundreds of billions of won in insurance payments by prescribing large quantities of factory-produced herbal medicines to patients involved in traffic accidents. The complaint reportedly named the chairman of the Jaseng Medical Foundation, the directors of 21 Jaseng Korean Medicine Hospitals nationwide, and the CEO of an external herbal medicine preparation center as defendants.

Police plan to secure relevant documents, such as prescription records, through the search and seizure operation. They aim to determine whether there were organized instructions from the foundation level to commit insurance fraud. The investigation is expected to shed light on the extent of the alleged scheme and the hospital's involvement.

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The Jaseng Korean Medicine Hospital, accused of insurance fraud totaling tens of billions of won, is now under compulsory investigation by the police.