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| ▲ People smoke e-cigarettes near a road in Seoul on Jan. 15, 2026. (Yonhap) |
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| ▲ A convenience store worker picks out a cigarette pack at a store in Seoul on Jan. 15, 2026. (Yonhap) |
court-tobacco lawsuit
Appeals court rules against health insurer's damages claim against major tobacco companies
By Chae Yun-hwan
SEOUL, Jan. 15 (Yonhap) -- An appellate court on Thursday ruled against the state health insurer in its smoking-related damages suit against three major tobacco firms, upholding a lower court ruling in favor of the companies.
The Seoul High Court rejected the compensation request filed by the National Health Insurance Service (NHIS) against KT&G Corp., a leading South Korean cigarette producer, and the local units of two foreign companies -- British American Tobacco and Philip Morris.
In 2014, the NHIS sued the three firms, seeking compensation of 53.3 billion won (US$36 million) -- the agency's total spending from 2003-2013 to cover costs for treating 3,465 patients of specific types of lung cancer and laryngeal cancer who smoked for more than 30 years and more than a pack a day for over 20 years.
The state health insurer has argued that the tobacco companies should be responsible for the financial burden incurred as there is a causal relationship between smoking and lung cancer.
The court, however, rejected the argument, saying the agency's insurance benefit expenditures were based on its duties as outlined by the law.
It also cited a Supreme Court ruling stating that a causal relationship between smoking and lung cancer cannot be established solely on the fact that a person who smoked was diagnosed with the disease, indicating other factors should be considered.
NHIS President Jung Ki-suck expressed disappointment after the ruling.
"There is a big disparity between science and law," he said. "Although it is a disappointing and regrettable verdict, I believe there will be recognition someday.
"While not 100 percent, it is a scientific truth that you can get lung cancer if you smoke."
In 2020, a district court ruled against the state health insurer, saying it was hard to acknowledge direct connections between the insurer's expenditures and the tobacco firms' businesses.
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