S. Korean Court Nears Final Ruling on $35M Claim Against PMI, BAT, KT&G

Apr.23.2025
S. Korean Court Nears Final Ruling on $35M Claim Against PMI, BAT, KT&G
South Korea’s National Health Insurance Service (NHIS) filed a lawsuit seeking about 50 billion won (approximately USD 35 million) in damages against Korea Tobacco & Ginseng (KT&G), Philip Morris International Korea, and British American Tobacco Korea, arguing that these companies should reimburse the treatment costs for patients with smoking-related cancers . Originally lodged in April 2014, the case has spanned 11 years and has now entered the final oral-argument phase at the appellate level.

Key points:

Background and scale of the case: The National Health Insurance Service (NHIS) of South Korea has filed a lawsuit since 2014 against KT&G, Philip Morris International (PMI) Korea (Philip Morris Korea), British American Tobacco Korea (BAT Korea), and others, seeking compensation of 533 billion Korean won (approximately 38 million US dollars). The reason for the lawsuit is that NHIS has paid for treatment expenses for patients suffering from smoking-related cancers.

 

First instance and second instance results: The first instance court found it difficult to confirm a direct causal relationship between smoking and cancer, supporting the tobacco company's position. In the second instance, the healthcare organization presented testimonies from an 86-year-old patient, asserting that there were no other contributing factors to their cancer besides a long history of smoking, in an attempt to strengthen the causal relationship.

 

Controversy over ingredients and court ruling: The first trial also involved a dispute over the responsibility of tar and nicotine in tobacco. The court believed that nicotine is a core attribute of tobacco products and cannot be used as a basis for establishing liability for infringement.


According to N. News, the South Korean National Health Insurance Service (NHIS) has entered the final stage of a lawsuit seeking approximately 500 billion Korean won (approximately 35 million US dollars) in compensation from multiple tobacco companies. The Chief Judge of the Civil 6-1 Division of the Seoul High Court will hold a final round of debates on May 22, after which the date for the ruling on the case will be determined.

 

The case has been ongoing for 11 years since it was filed in April 2014. NHIS is seeking a claim of approximately 533 billion Korean won from KT&G, Philip Morris International (PMI) Korea, and British American Tobacco Korea to reimburse the medical expenses paid by the organization from 2003 to 2013 for 3,465 patients with lung cancer (small cell carcinoma, squamous cell carcinoma) and throat cancer (squamous cell carcinoma).

 

The central dispute of the lawsuit focuses on the causal relationship between smoking and the development of cancer, as well as whether tobacco companies should be held legally responsible for this.

 

In November 2020, the Seoul Central District Court ruled in the first instance that it is difficult to establish a direct causal relationship between smoking and cancer, therefore rejecting all claims of NHIS. The court believed that cancer may be caused by genetics, lifestyle, or other environmental factors. In the first instance, NHIS also argued that tobacco companies did not effectively reduce tar and nicotine levels, but instead added flavor enhancers to enhance the taste. However, the court considered that consumers actively seek the pharmacological sedative effects of nicotine, so this component is inherent to tobacco products and it is difficult to hold tobacco companies accountable for it.

 

NHIS subsequently filed an appeal in December of the same year. In the second trial, NHIS submitted a statement from lung cancer patient A, who is over 80 years old, as additional evidence, attempting to prove that A's lung cancer had no other obvious causes besides smoking. The statement pointed out that A had been smoking for decades since his twenties, although he quit smoking in the late 1990s, he was diagnosed with lung cancer in 2010, and had no relevant family medical history.

 

Currently, South Korean judicial authorities tend to attribute the responsibility for diseases caused by smoking to individuals. In 2014, the South Korean Supreme Court ruled in a similar lawsuit filed by 30 patients against KT&G that smokers must bear the health consequences themselves and did not support their compensation claim.

 

In 1998, the government of all 50 states in the United States jointly filed a lawsuit against tobacco companies including Philip Morris International (PMI) and Reynolds Tobacco, eventually reaching a $246 billion settlement agreement. This result was partially influenced by the "Tobacco Industry Documents," released by internal researchers in 1994, prompting the public to reassess the addictive nature and harm of tobacco products.

 

NHIS believes that this lawsuit is not only legally significant but also helps to raise public awareness on smoking cessation. NHIS is currently promoting a "1 million national support signature campaign" in order to create public opinion support for the upcoming second trial judgment.

 

The tobacco company, on the other hand, stated that they will participate in the second appeal process "honestly".

 

It is reported that the National Health Insurance Service (NHIS) of Korea is a national public institution under the Ministry of Health and Welfare, responsible for the nationwide operation and management of health insurance. Its main duties include providing medical insurance services to the public, collecting insurance premiums, and overseeing settlements with medical institutions.

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
Philippine Customs Seizes $2.22 Million in Misdeclared Vape Products From China
The Philippine Bureau of Customs said it intercepted nine containers of misdeclared vape and vape-related products from China at the Manila International Container Port, with an estimated value of about ₱137 millionor, about $2.22 million.
Jul.10
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma says German illegal e-cigarette seizures reached 70% of 2025 total, pouches 179%
Reemtsma said its first-half 2026 black-market tracker for tobacco and nicotine products showed a continued rise in officially reported seizures in Germany, with illegal e-cigarette seizures reaching 70% of the full-year 2025 level and snus and nicotine pouch seizures reaching 179% of last year’s total.
Jul.08
Japan’s Heated Tobacco Tax Reform Drives Price Increase as JT Raises All Ploom Sticks by ¥40
Japan’s Heated Tobacco Tax Reform Drives Price Increase as JT Raises All Ploom Sticks by ¥40
Japan Tobacco Inc. (JT) has applied to Japan’s finance minister for approval to revise retail prices of its Ploom heated tobacco sticks following planned changes to the heated tobacco tax system from October 1, 2026. If approved, all 31 Ploom stick products will increase by ¥40. After the adjustment, EVO products will cost ¥620 per 20-stick pack, MEVIUS products ¥590 and CAMEL products ¥570. JT said the price revision is intended to respond to tax changes while maintaining product quality and brand value. The tax reform is expected to narrow the tax gap between combustible cigarettes and heated tobacco products, potentially reshaping pricing strategies in Japan’s heated tobacco market.
Jul.22
EU Tobacco Rules Face Pushback as Analysis Says 90% of Consultation Responses Raised Objections
EU Tobacco Rules Face Pushback as Analysis Says 90% of Consultation Responses Raised Objections
An analysis by We Are Innovation says more than 90% of over 82,000 responses to the European Commission’s public consultation on the Tobacco Products Directive revision raised at least one substantial objection to the proposed regulatory direction.
Jul.13
Australia’s Tobacco Tax Debate Intensifies as One Nation’s Barnaby Joyce Warns of Illicit Market Growth
Australia’s Tobacco Tax Debate Intensifies as One Nation’s Barnaby Joyce Warns of Illicit Market Growth
Australian One Nation MP Barnaby Joyce has criticised continued tobacco excise increases, arguing that higher taxes are driving consumers toward illicit tobacco markets and benefiting organised crime groups.
Regulations
Jul.13 by 2Firsts Perspectives
Senate Democrat Wyden Probes Trump Administration Vape Policy Shift, Seeks Records From HHS and Reynolds American
Senate Democrat Wyden Probes Trump Administration Vape Policy Shift, Seeks Records From HHS and Reynolds American
U.S. Senator Ron Wyden, the Democratic ranking member of the Senate Finance Committee, has launched an investigation into flavored vape policy changes and requested records from the Department of Health and Human Services (HHS), Reynolds American and Botanic Tonics. The investigation focuses on a timeline involving Reynolds American’s $5 million donation to MAGA Inc. in April 2026 and subsequent vape policy developments. Wyden said the review aims to examine potential links between political donations, corporate communications and government decisions. The investigation does not represent a finding of wrongdoing.
Innovation
Aug.07 by 2Firsts Perspectives