Police raid Jaseng Oriental Medicine Hospital over alleged insurance fraud involving bulk herbal prescriptions

The Seoul Metropolitan Police Agency's wide-area investigation unit launched a search and seizure Thursday morning at Jaseng Oriental Medicine Hospital on insurance fraud charges. Both the hospital's Gangnam-gu location and the Jaseng Medical Foundation were named as suspects in the search warrant.

Jaseng Oriental Medicine Hospital faces allegations that it prescribed mass-produced herbal medicines to traffic accident patients and improperly collected hundreds of billions of won in insurance payouts. Four insurers — including Samsung Fire and Hyundai Marine & Fire Insurance — filed complaints with police against the hospital for alleged violations of the Special Act on Insurance Fraud Prevention.

The Jaseng Medical Foundation operates dozens of affiliated hospitals across the country, including in Seoul. The complaints reportedly name the foundation's chairman and the directors of Jaseng Oriental Medicine Hospital branches nationwide as defendants.

Police are expected to seize prescription records for traffic accident patients and insurance claim-related documents during Thursday's raid.