[2024 National Audit] Focus on Allegations of Special Treatment for Jaseng Korean Medicine Hospital by the Presidential Office

Minister Cho Kyu-hong, "Audit Review If Necessary"

During the National Assembly Health and Welfare Committee's audit, allegations of preferential treatment were intensively raised regarding Jaseng Korean Medicine Hospital, operated by the father-in-law of former Presidential Office Personnel Secretary Lee Won-mo. It was pointed out that Jaseng Korean Medicine Hospital is the biggest beneficiary of the 'Step 2 Pilot Project for Health Insurance Coverage of Herbal Medicine' as its uniquely manufactured and prescribed 'Cheongpajeon' was included in the health insurance reimbursement items.

[Image source=Yonhap News]

At the Health and Welfare Committee audit held on the 7th, Kang Sun-woo, a member of the Democratic Party of Korea, stated based on data obtained from the Health Insurance Review and Assessment Service (HIRA) and others, "From April to August, 21 Jaseng-affiliated Korean medicine hospitals and clinics claimed 7,355 cases of health insurance reimbursement for Harpagophytum root (Cheonsugeun), the main ingredient of Cheongpajeon." This accounts for 99.6% of the total 7,382 claims for Harpagophytum root during the same period.

Rep. Kang also said, "The total cost of herbal medicine materials paid to Jaseng-affiliated Korean medicine hospitals and clinics was 377.7 million KRW, accounting for 99.7% of the total amount (378.99 million KRW)."

Previously, the Step 1 pilot project to review the appropriateness of health insurance coverage for herbal medicine, which had high demand for coverage during Korean medicine treatments, was implemented from November 20, 2020, to the end of April this year. In the Step 2 project, which will be implemented until 2026, lumbar disc herniation was newly included as a target disease for the pilot project, and Harpagophytum root, used as a treatment, was recognized as a pilot project herbal medicine on March 12. It is known that Shin Joon-sik, the director of Jaseng Korean Medicine Hospital, holds a patent for Harpagophytum root.

Rep. Kang stated, "President Yoon Seok-yeol introduced his beloved youngest prosecutor (former Personnel Secretary Lee Won-mo) to Director Shin’s youngest daughter," adding, "Lee’s wife is close to First Lady Kim Keon-hee to the extent that she boarded the presidential aircraft. Also, Kang Jung-gu’s child, Kang Mo, who works at the Health Insurance Review and Assessment Service, worked in Lee Won-mo’s secretary office."

Seo Young-seok, also a member of the Democratic Party of Korea, pointed out, "Harpagophytum root is an herbal medicine almost exclusively used by Jaseng Korean Medicine Hospital," and added, "Only 13% of all Korean medicine doctors use it, so its inclusion in the herbal medicine health insurance reimbursement list is a special favor."

Rep. Seo also raised suspicions that Director Shin and officials from Jaseng Korean Medicine Hospital were involved in the process of adding lumbar disc herniation as a target disease in the pilot project and including Harpagophytum root in the reimbursement items.

Rep. Seo said, "In 2021, the evidence grade for herbal treatment of lumbar disc herniation changed from grade C to grade B," and added, "Professor Seo Byung-kwan of Kyung Hee University (College of Korean Medicine) changed the basis for herbal medicine reimbursement, and three Korean medicine doctors affiliated with Jaseng Korean Medicine Hospital participated in the development process of the clinical practice guidelines."

In response, Minister Cho rebutted, "The reimbursement recommendation grade often changes if additional clinical papers or other evidence are added, not only for lumbar disc herniation, and the recommendation of grade B was made in November 2019, which has nothing to do with the current government."

However, when Rep. Seo urged, "If the Ministry of Health and Welfare is confident before the public, it should conduct a thorough internal audit," Minister Cho replied, "I will look into the reasons and evidence and consider an audit if necessary."