Tobacco Industry: "Smoking Is a Personal Choice, Not Responsible for Cancer... Respect Judicial Decisions"
Kim Yong-ik, President of the National Health Insurance Service, is answering questions from the press on the 20th in front of the Seoul Central District Court West Building in Seocho-gu, Seoul. On the same day, the National Health Insurance Service lost a lawsuit claiming damages for smoking against tobacco companies including KT&G, Korea Philip Morris, and British American Tobacco (BAT) Korea. Photo by Moon Ho-nam munonam@
View original image[Asia Economy Reporters Seon-ae Lee and So-jeong Seo] After 15 intense legal battles over six years, the judiciary sided with the tobacco companies. Ultimately, the Supreme Court precedent was not overturned, and the harmfulness of tobacco and the corresponding responsibility of tobacco companies were not recognized.
A Sigh of Relief from the Tobacco Industry: "Respecting the Court's Judgment"
On the morning of the 20th at 10 a.m., the Seoul Central District Court Civil Division 22 (Presiding Judge Hong Ki-chan) ruled against the National Health Insurance Service (NHIS) in the first trial of the damages claim lawsuit filed against KT&G, Korea Philip Morris, and BAT Korea. The tobacco industry expressed respect for the court's judgment. KT&G stated, "We respect the court's judgment and will announce the company's official position after obtaining and reviewing the exact contents of the verdict." Korea Philip Morris and BAT Korea also briefly expressed their respect for the court's decision.
The NHIS's tobacco war began in earnest on April 14, 2014, five years ago. The NHIS filed a damages claim of approximately 53.7 billion KRW against three domestic and international tobacco companies: KT&G, Korea Philip Morris, and BAT Korea. This was after the Supreme Court ruled against a smoker who had filed a damages claim for lung cancer caused by smoking, and four days later, the NHIS, which had paid the treatment costs to the smoker, directly filed the damages claim.
The NHIS's lawsuit argued that "tobacco companies should compensate for the enormous health insurance benefits paid to patients who contracted diseases due to tobacco." The NHIS demanded medical expenses paid between 2003 and 2013 for patients who had smoked for over 30 years and smoked at least one pack a day for 20 years, among those diagnosed with cancers strongly linked to smoking. The total number of patients was 3,484, and the calculated damages amounted to 53.7 billion KRW.
15 Legal Battles Over Six Years
From September 2014 until the trial was suspended in May 2018, both sides engaged in fierce disputes over 13 hearings. The trial resumed in September this year (14th hearing), and the final hearing concluded on the 23rd of last month. The main issues in the lawsuit were whether the NHIS could directly claim damages, the causal relationship between smoking and lung or laryngeal cancer, the establishment of product liability for tobacco companies, the establishment of tort liability for tobacco companies, and the scope of damages.
The NHIS emphasized that the "causal relationship between smoking and lung cancer" is scientifically clear, while the tobacco companies acknowledged the harmfulness of tobacco but argued that the Supreme Court ruling did not recognize an individual causal relationship between smoking and lung cancer, and that cancer caused by smoking is a matter of personal choice, not the responsibility of tobacco manufacturers or sellers.
Regarding responsibility for the harms caused by smoking, tobacco companies argued that smokers voluntarily smoked despite warning labels, while the NHIS countered that tobacco additives increased risks and that warnings were insufficient. Regarding the "qualification to directly claim damages," the NHIS claimed it had the right to directly claim damages on behalf of smokers according to current laws and precedents, but tobacco companies argued that since they are not the direct subjects of smoking-related damages, such lawsuits are inappropriate.
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Following the first trial loss, the NHIS immediately expressed its intention to appeal, indicating that the lawsuit is likely to be prolonged. Kim Yong-ik, Director of the NHIS, stated, "Today's ruling is a very shocking and regrettable decision. Although the NHIS has made efforts to legally recognize the clear damages caused by tobacco, it has confirmed that this is not easy. We are reviewing the possibility of appealing and will continue efforts to reveal and have tobacco-related damages recognized."
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