New Delhi | South Korean police have conducted raids at five facilities linked to Jaseng Hospital of Korean Medicine as part of a major insurance fraud investigation. The action follows complaints filed by four leading non-life insurers, including Samsung Fire & Marine Insurance and Hyundai Marine & Fire Insurance, alleging violations of the country’s Special Act on the Prevention of Insurance Fraud.
According to the Financial Crime Investigation Unit of the Seoul Metropolitan Police Agency, the hospital is accused of supplying traffic accident patients with pre-manufactured herbal medicines while allegedly presenting them as individually prescribed treatments in order to obtain insurance reimbursements. Investigators believe the practice may have resulted in insurance claims worth billions of won.
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Under guidelines issued by South Korea’s Ministry of Land, Infrastructure and Transport, herbal medicines provided to traffic accident patients must be prescribed individually based on each patient’s medical condition and symptoms. Police are now examining seized prescription records and other documents to determine whether the alleged scheme was part of an organized effort to fraudulently obtain insurance payouts.
A total of 23 individuals are under investigation, including the chairman of the Jaseng Medical Foundation, directors of 21 Jaseng hospital branches across the country, and the representative of an external herbal medicine preparation centre.
Jaseng Hospital has denied all allegations. The institution maintains that herbal medicines are prescribed individually after evaluating each patient’s symptoms, physical condition, medical history, and clinical diagnosis. It also stated that similar complaints filed by insurers in the past had previously been dismissed by investigating authorities.
The raids form part of South Korea’s nationwide insurance fraud enforcement campaign being conducted by the National Police Agency from February 2 to October 31, 2026. The campaign targets organized insurance fraud, staged traffic accident schemes, and illegal medical institutions. Separately, the Ministry of Health and Welfare is also investigating the alleged misuse of non-insured medical treatments.
According to the Financial Services Commission (FSC), detected insurance fraud in South Korea’s private insurance sector reached a record 1.1571 trillion won in 2025, while total annual insurance fraud, including undetected cases, is estimated at approximately 9 trillion won. The commission has warned that such fraud ultimately increases insurers’ costs, leading to higher insurance premiums for honest policyholders.
In response to the growing use of artificial intelligence in fraudulent claims, the FSC has established a dedicated task force to develop an AI-based insurance fraud detection platform. The proposed system aims to strengthen the early identification, prevention, and investigation of suspicious insurance claims.
About the author — Suvedita Nath is a science student with a growing interest in cybercrime and digital safety. She writes on online activity, cyber threats, and technology-driven risks. Her work focuses on clarity, accuracy, and public awareness.
