State agency sues cigarette firms

The National Health Insurance Service (NHIS) filed a 54 billion won damages lawsuit against three cigarette makers — KT&G, Philip Morris Korea and BAT Korea — Monday.

This is the first suit to be brought by a state-run agency here.

In the case filed with the Seoul Central District Court, the state insurance firm said the damages were aimed at recovering the medical costs for the three most likely smoking-related cancers from 2003 to 2012.

The three include two types of lung cancer and a type of throat cancer.

The NHIS elaborated that the medical bills cover only those who got ill after smoking more than a pack per day for 20 years. From last year, the insurance body has been stressing that cigarette makers should be held responsible for 1.7 trillion won in health insurance payments.

The suit follows an unfavorable decision by the Supreme Court. The highest court ruled against family members who sought compensations against KT&G.

That verdict was seen as the court not accepting conventional wisdom that smoking and lung cancer are closely related, and cigarette companies concealed the hazards of using their products.

“The verdict came because KT&G didn’t disclose pertinent data,” said lawyer Chung Mi-hwa from law firm Namsan, which filed the suit on behalf of the NHIS. “However, the NHIS’s suit will be supported by plenty of data because it will involve BAT and Philip Morris, which have experienced suits in the U.S.”

He said two global cigarette makers have lost in a number of U.S. cases targeting their allegedly deceptive marketing.

The three are the biggest members of the Korea Tobacco Association, a lobby group of Korean and multinational tobacco companies.

JTI Korea was excluded because of its small domestic market share.

The NHIS has prepared the suit for the past three months. By Nam Hyun-woo The korea times