The South Korean government has launched a task force to address the rising number of illegal medical institutions and improve the collection rate of health benefits that have been determined for recovery. On May 18, the Supreme Prosecutors' Office announced the formation of the "Joint Investigation Team for Illegal Medical Practices," which includes personnel from seven investigative and regulatory agencies, including the police and the Ministry of Health and Welfare.
The task force comprises 30 members: four prosecutors, seven police officers, two special judicial police from the Ministry of Welfare, 12 from the National Health Insurance Service, one from the National Tax Service, three from the Health Insurance Review and Assessment Service, and one from the Financial Supervisory Service. The Seoul Western District Prosecutor's Office was designated as a specialized food and drug safety office in May 2013 and has experience operating a joint investigation team for rebates since 2014.
The task force will operate under the leadership of the head of the Food and Drug Crime Investigation Division at the Seoul Western District Prosecutor's Office. It will include an investigation team (composed of police and special police from the Ministry of Welfare), a support team (from the National Health Insurance Service, Health Insurance Review and Assessment Service, National Tax Service, and Financial Supervisory Service), and a joint enforcement team (from the National Health Insurance Service and Health Insurance Review and Assessment Service).
Initially, the support team will provide criminal information, allowing the enforcement team to conduct operations. Following this, the investigation team will focus on cases involving sham hospitals, excessive non-covered medical treatments, and fraudulent insurance claims. The prosecutor's office will then take over the cases for further investigation or processing.
The joint investigation team aims to expedite the process of asset forfeiture and recovery through inter-agency cooperation from the outset of investigations. It will also support the recovery of assets preserved through the National Health Insurance Service. Additionally, the team plans to coordinate with the Ministry of Welfare to ensure swift administrative actions, such as business suspensions and fines, separate from criminal penalties.
According to data from the National Health Insurance Service, from 2009 to 2025, 1,805 illegal medical institutions, including sham hospitals, were subject to enforcement and prosecution, resulting in a total recovery decision amounting to 29.16 trillion won. However, the actual amount recovered was only 256.3 billion won, or 8.79% of the total.
The number of illegal medical institutions has been on the rise, with 28 in 2022, 50 in both 2023 and 2024, and 87 in 2025. Despite this increase, the average recovery decision amount during this period was 154.3 billion won, with a collection rate averaging only 11.27%.
In response, the government has established the joint investigation team to eradicate the establishment and operation of illegal medical institutions and to confiscate the proceeds of related crimes.
A spokesperson for the Supreme Prosecutors' Office stated, "We expect that the formation of this joint investigation team, which systematically combines the investigative capabilities of law enforcement with the expertise of relevant agencies in crime information collection and analysis, will shorten the time required for the entire process of recovering illegal assets after investigations."
The spokesperson added, "Through thorough cooperation among agencies, we will strive to eliminate the establishment and operation of illegal medical institutions, such as sham hospitals, and to strengthen the financial health of the National Health Insurance system through prompt administrative actions."
* This article has been translated by AI.
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