Supreme Court Orders Kukil Gosiwon Owner and DB Insurance to Pay Over 21 Million Won to NHIS

NHIS Filed Lawsuit Against Insurer After Paying Medical Care Benefits

In the dispute over health insurance benefits for the victims of the Gukil Goshiwon fire disaster, a final court ruling has ordered the insurance company and the goshiwon owner to pay approximately 21 million won to the National Health Insurance Service (NHIS).

Police and fire officials are conducting an on-site investigation to determine the cause of the fire at Gukil Goshiwon in Gwonsoo-dong, Jongno-gu, Seoul, on November 9, 2018. Photo by Yonhap News

According to the legal community on May 19, the Supreme Court's Third Division (Presiding Justice Lee Heung-gu) upheld the previous ruling in a retrial of the NHIS's claim for indemnity against DB Insurance regarding the Gukil Goshiwon fire. The court confirmed that "the defendants, jointly with Mr. Koo, the director of the goshiwon, must pay over 21.17 million won to the plaintiff."

This lawsuit was initiated after the NHIS paid health insurance benefits to nine victims of the Gukil Goshiwon fire disaster, and then sought reimbursement from Mr. Koo and DB Insurance, the liability insurer. Under the National Health Insurance Act, the NHIS is entitled to claim reimbursement of health insurance benefits from third parties responsible for the accident.

Previously, the NHIS provided a total of approximately 38.26 million won in medical care benefits to nine injured victims. Subsequently, the NHIS filed a claim for indemnity against Mr. Koo and DB Insurance, with which he was insured. This process involves the NHIS exercising the victims' right to claim damages by seeking reimbursement from the party responsible for the accident.

In contrast, DB Insurance argued that it had already settled with the victims and paid a total insurance payout of 59.49 million won, and therefore had no or only limited additional liability to the NHIS.

The first and second trial courts ruled in favor of the NHIS, ordering DB Insurance and the goshiwon operator to jointly pay approximately 38.62 million won. However, the Supreme Court in its first appellate review remanded the case, reasoning that even if the NHIS covered the victims' medical expenses, it could not acquire claims for compensation such as damages for pain and suffering.

On remand, the lower court recalculated the amount by excluding the proportion of insurance payouts unrelated to health insurance benefits, in line with the Supreme Court's guidance. In the subsequent appeal, the Supreme Court found no fault with the lower court's judgment and dismissed the appeal.

Meanwhile, on November 9, 2018, a fire broke out at Gukil Goshiwon in Jongno-gu, Seoul, resulting in the deaths of seven residents and injuries to eleven others. Investigations revealed that the scale of the damage was exacerbated by Mr. Koo's negligence in managing fire safety facilities.

This content was produced with the assistance of AI translation services.