South Korea’s state health insurer loses its appeal against three major tobacco firms in a landmark lawsuit seeking damages for smoking-related healthcare costs.
SEOUL: South Korea’s state health insurer lost an appeal on Thursday in its lawsuit seeking damages from the country’s three largest tobacco companies.
The National Health Insurance Service had sought to hold the firms “socially accountable for the harms caused by smoking”.
The suit, valued at 53.3 billion won (RM136.2 million), targeted British American Tobacco and Philip Morris Korea among others.
It covered 3,465 patients who smoked for at least three decades and were diagnosed with related cancers like lung cancer.
About 90% of those patients have already died.
The appellate court upheld an earlier ruling in favour of the tobacco companies.
The court had previously stated the NHIS was obliged to pay medical benefits under the law even if it led to financial losses.
It also said proving a direct causal link would require evidence excluding other risk factors like lifestyle.
NHIS President Jung Ki-suck told reporters the ruling was “deeply disappointing”.
“I think tobacco companies are hit-and-run offenders,” he said after the verdict.
“A car caused a traffic accident. Many people were injured and killed. But the driver fled the scene.”
He added that in his view, “that car driver is cigarettes, and the companies that sell them.”
The NHIS said the case also aimed to “prevent leakage in the national health insurance finances while promoting public health”.
Smoking rates in South Korea have fallen over the past decade to about one-fifth of the population.
