Hospital A, a large Korean medicine hospital in Daegu, promoted concussion diagnoses, pickup services and flexible overnight leave to insurance agencies, according to financial industry sources. A major South Korean property and casualty insurer plans to file a criminal complaint alleging violations of the Medical Service Act after finding signs of improper patient recruitment and claims practices. The hospital received 3.36 billion won ($2.4 million) in auto insurance payments from that insurer through August, or 93% of the 3.608 billion won paid during all of last year, and more than the 2.149 billion won paid in 2024. The case has drawn scrutiny because the eight-week rule requires medical-necessity reviews for grades 12 to 14 injuries, while grade 11 concussions remain outside the rule. Insurers also found Hospital A’s admission rate was 43.2%, compared with a typical 15% to 20% range, while inpatient treatment costs averaged 2.4 times outpatient care for comparable injuries. Separate investigations in Gwangju and Busan highlight wider allegations involving false inpatient records and misclassified herbal treatments. Korean medicine accounted for 894.7 billion won, or 59.4%, of South Korea’s auto-insurance medical costs in the first half of this year.