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South Korea\\\'s state health insurer sues tobacco firms

Monday, 14 April 2014


South Korea's state health insurer is suing three tobacco firms, including the local unit of Philip Morris, to offset smoking-related treatment costs. The local arm of British American Tobacco has also been named in the lawsuit, along with market leader at home, KT&G Corp. The insurer is seeking an initial sum of $52m (£31m) in damages. The state insurer has said previously it spends more than $1.6bn each year on treating smoking-related diseases. South Korea's National Health Insurance Service (NHIS) said in a statement: "Smoking is a serious issue affecting people, particularly the youth and women. "So we will push ahead with this suit with a strong determination, for the future of our nation and sustainability of our health insurance." The lawsuit from NHIS comes days after South Korea's Supreme Court said there was a lack of proof that smoking causes lung cancer, according to BBC.