"Joint Task Force for Illegal Medical Offenses Launched to Eradicate 'Administrative Hospitals,' Main Cause of Health Insurance Fund Losses"

30 Investigators from 7 Agencies, Including Prosecution and Police
Established at Seoul Western District Prosecutors' Office

In order to eradicate excessive treatments and fraudulent insurance claims committed by illegal medical institutions, such as so-called "administrative hospitals," a Joint Task Force for Illegal Medical Offenses has been launched.

On the 1st, a flag in front of the Supreme Prosecutors' Office in Seocho-gu, Seoul, fluttered in the wind as Chief Prosecutor Woojung Shim expressed his intention to resign after nine months in office. The Special Investigation Team for Internal Affairs plans to investigate Chief Prosecutor Shim for abuse of power and other charges after he immediately abandoned the appeal following the cancellation of former President Yoon Suk-yeol's detention. 2025.07.01 Photo by Yoon Dongju

On the 18th, the Supreme Prosecutors' Office announced that it had established the "Joint Task Force for Illegal Medical Offenses" at the Seoul Western District Prosecutors' Office. The team consists of 30 investigators from seven agencies: the prosecution, police, Ministry of Health and Welfare, National Health Insurance Service, Health Insurance Review & Assessment Service, National Tax Service, and Financial Supervisory Service.

This joint interagency task force was created in response to the determination that illegal and excessive treatments by unauthorized medical institutions are a major cause of financial losses in the national health insurance fund. "Administrative hospitals," which are established without proper medical licenses, are primarily driven by profit, often performing excessive non-insured treatments and unlawfully obtaining health insurance payments contributed by the public, leading to various negative consequences.

In fact, from 2009 to 2025, a total of 1,805 illegal medical institutions were identified, and a total of 2.9162 trillion won in healthcare benefits was ordered to be reclaimed. However, only 256.3 billion won, or 8.79% of the total, has actually been collected. Over the past four years (2022–2025), an average of 154.3 billion won was ordered to be reclaimed annually, but the actual collection rate has remained at an average of just 11.27%, showing little improvement.

To address this, the task force will consolidate information gathering, enforcement, and investigative capabilities that were previously dispersed among different agencies, enabling a more comprehensive response. When the investigation support team provides intelligence on crimes, the joint enforcement team will conduct crackdowns, and the investigation team will immediately commence investigations.

The task force plans to significantly shorten the period between investigation and the confiscation of illegal assets, enabling the swift recovery of criminal proceeds. The Supreme Prosecutors' Office stated, "Through interagency cooperation, we will thoroughly deprive criminals of their illicit gains by ensuring swift seizure and preservation procedures starting from the investigation stage," and added, "In addition to criminal penalties, we will coordinate prompt administrative actions through the Ministry of Health and Welfare to reinforce the financial soundness of the national health insurance fund."

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