'Tobacco = Lung Cancer?'... What Was the Court's Decision in the 6-Year Lawsuit?

[Asia Economy Reporter Baek Kyunghwan] The court ruled that it cannot recognize the harmfulness of cigarettes causing diseases. This is the first-instance ruling in a lawsuit filed by the National Health Insurance Service (NHIS) against tobacco companies seeking damages worth 50 billion KRW. This is the first conclusion in the case, which was filed six years ago.

The Civil Division 22 of the Seoul Central District Court (Presiding Judge Hong Gichan) on the 20th ruled in favor of the defendants, KT&G, Korea Philip Morris, and BAT Korea, dismissing the NHIS's claim for damages.

Previously, the NHIS filed a lawsuit in April 2014 demanding compensation totaling 53.3 billion KRW from tobacco companies for additional medical expenses incurred due to smoking. The claim covered medical expenses borne by the NHIS from 2003 to 2013 for patients with three types of cancer strongly linked to smoking (small cell lung cancer, squamous cell lung cancer, and squamous cell laryngeal cancer) who smoked at least one pack a day for over 20 years and had a smoking period exceeding 30 years.

The key issue was the causal relationship between smoking and the onset of lung cancer.

Previously, the Supreme Court in similar lawsuits ruled that cancer results from a combination of congenital factors such as genetics and acquired factors such as dietary habits, and did not recognize an individual causal relationship. The court's judgment on this day was the same. It found that the evidence submitted by the NHIS did not overturn the Supreme Court precedents.

In fact, before the NHIS, 31 smoking victims and their families filed a damage compensation lawsuit against KT&G in 1999. However, they lost in the first trial in January 2007, the appellate trial in February 2011, and the Supreme Court ruling in April 2014. The Supreme Court, like the Central District Court's decision, did not recognize the harmfulness of smoking.

The court on this day also stated, "To recognize a causal relationship between smoking and diseases such as lung cancer, additional indirect facts proving that there are hardly any other risk factors besides smoking must be established during the evidence investigation process. However, the evidence submitted by the plaintiff only shows that the patients had a smoking history of over 20 years and were diagnosed with the disease." While some overseas rulings hold tobacco companies liable for damages, the domestic courts have consistently maintained their stance on the harmfulness of smoking.

The court also concluded that the NHIS does not have the authority to claim damages from tobacco companies based on medical expenses paid to insured individuals. It stated, "The plaintiff's expenditure on insurance benefits was not caused by the defendants' illegal acts but was merely spent under the insurance relationship due to health insurance enrollment," and "It is difficult to recognize a causal relationship between the defendants' actions and the insurance benefit expenditures." This implies that the lawsuit should be filed by the patients who suffered harm, not the NHIS.

Immediately after the verdict, the NHIS expressed its intention to appeal. Director Kim Yongik said, "This is a very shocking and regrettable ruling," adding, "We tried to legally acknowledge the clear harm caused by tobacco, but this confirmed once again that the path is not easy." He continued, "We are reviewing the possibility of appealing," and added, "We will continue efforts to reveal and have the harm caused by tobacco recognized."