The National Health Insurance Corporation (NHIS) of South Korea has filed a lawsuit for damages of approximately 50 billion won (about 35 million US dollars) against tobacco companies such as KT&G, Philip Morris International, and British American Tobacco. The case has lasted for 11 years and is now in the final stage of the second-instance debate. The dispute focuses on the causal relationship between smoking and cancer and whether tobacco enterprises should bear the liability for compensation.
Key points:
- Case background and scale of demands: The National Health Insurance Corporation (NHIS) of South Korea has filed lawsuits against KT&G Philip Morris Korea, BAT Korea, etc. since 2014, with a claim amount of 53.3 billion won (approximately 38 million US dollars). The reason is that the treatment costs have been paid for patients with smoking-related cancers.
- The results of the first instance and the second instance: The court of first instance held that the direct causal relationship between smoking and cancer was difficult to confirm and supported the position of the tobacco company. In the second instance, the medical insurance institution submitted the testimony of an 86-year-old patient, claiming that there were no other causes for his cancer but only a long history of smoking, in an attempt to strengthen the causal relationship.
- Ingredient disputes and court judgments: The first instance also involved disputes over the liability for tar and nicotine in tobacco. The court held that nicotine is the core attribute of tobacco products and thus cannot be used as the basis for constituting tort liability.
British American Tobacco, KT&G, and other tobacco companies claimed $35M
According to N. News, the lawsuit filed by South Korea’s National Health Insurance Corporation (NHIS) against several tobacco companies for approximately 50 billion won (about 35 million US dollars) in compensation has entered the final stage of the second instance. The presiding judge of the Civil 6-1 Division of the Seoul High Court will hold the final round of the debate meeting on May 22nd, after which the judgment date of the case will be determined.
The case has been ongoing for 11 years since it was filed in April 2014. NHIS has claimed approximately 53.3 billion won from KT&G, Philip Morris International Korea, and British American Tobacco Korea, demanding the refund of medical expenses paid by the institution for 3,465 patients with lung cancer (small cell carcinoma, squamous cell carcinoma) and laryngeal cancer (squamous cell carcinoma) between 2003 and 2013.
The core disputes of the lawsuit focus on the causal relationship between smoking and the onset of cancer, as well as whether tobacco companies should bear legal responsibility for this.
In November 2020, the Seoul Central District Court ruled in the first instance that it was difficult to determine a direct causal relationship between smoking and cancer, and thus rejected all of NHIS’s claims. The court holds that cancer may be caused by genetics, lifestyle or other environmental factors. In the first instance, NHIS also claimed that tobacco companies failed to reduce the content of tar and nicotine effectively, but instead added flavor enhancers to improve the taste. However, the court held that consumers actively sought the pharmacological sedative effect brought by nicotine, so this component was an inherent characteristic of tobacco products and it was difficult to hold tobacco companies accountable based on this.
Second-instance ruling coming soon
NHIS then filed an appeal in December of the same year. In the second instance. NHIS submitted A statement from a lung cancer patient over 80 years old as supplementary evidence, attempting to support that his lung cancer had no obvious causes other than smoking. The statement pointed out that Person A had been smoking for decades since his twenties. Although he quit smoking in the late 1990s, he was diagnosed with lung cancer in 2010 and had no related family history.
At present, the judicial authorities in South Korea tend to attribute the responsibility for diseases caused by smoking to individuals. In 2014, the Supreme Court of South Korea ruled in a similar lawsuit filed by 30 patients against KT&G that smokers should bear the health consequences themselves and did not support the compensation claim.
In 1998, 50 state governments in the United States jointly filed lawsuits against several tobacco companies, including Philip Morris International and Reynolds Tobacco, and eventually reached a settlement agreement worth 246 billion US dollars. This result was partly influenced by the “Declaration of Conscience” by internal researchers of tobacco companies in 1994, prompting the public to re-examine the addictive nature and harm of tobacco products.
Ingredient disputes and court judgments
NHIS believes that this lawsuit not only has legal significance but also helps raise public awareness of quitting smoking. NHIS is currently promoting a “One Million Citizens’ Support Signature Campaign”, aiming to create a public opinion foundation for the upcoming second-instance judgment.
The tobacco company stated that it would “honestly participate” in the second instance procedure.
It is reported that the National Health Insurance Corporation (NHIS) of South Korea is a national public institution affiliated with the Ministry of Health and Welfare of South Korea, responsible for the operation and management of health insurance throughout the country. Its main responsibilities include providing medical insurance services to the public, raising insurance premiums, and managing the settlement of medical institutions etc.
