Seoul: An appellate court on Thursday ruled against the state health insurer in its smoking-related damages suit against three major tobacco firms, upholding a lower court ruling in favor of the companies.

According to Yonhap News Agency, the Seoul High Court rejected the compensation request filed by the National Health Insurance Service (NHIS) against KT and G Corp., a leading South Korean cigarette producer, and the local units of two foreign companies-British American Tobacco and Philip Morris. In 2014, the NHIS sought compensation of 53.3 billion won (US$36 million) to cover costs for treating 3,465 patients of specific types of lung cancer and laryngeal cancer resulting from long-term smoking.

The state health insurer argued that the tobacco companies should bear the financial burden due to the causal relationship between smoking and lung cancer. However, the court dismissed this claim, stating that the agency's insurance benefit expenditures were based on its legal obligations. It referenced a Supreme Court ruling, indicating that a causal relationship between smoking and lung cancer requires more evidence than just a diagnosis following smoking.

NHIS President Jung Ki-suck expressed disappointment with the verdict, acknowledging the gap between scientific findings and legal interpretations. He noted, "Although it is a disappointing and regrettable verdict, I believe there will be recognition someday." Despite the ruling, he maintained that there is a scientific basis linking smoking to lung cancer.

In 2020, a district court similarly ruled against the NHIS, highlighting the difficulty in establishing direct connections between the insurer's expenditures and the tobacco firms' operations.