The number of false hospitalization and over-the-top treatments were found to have cost the insurance companies 99 billion won ($86 million) in 2015, up 35.6 percent from 2014’s 73 billion won. The figure from 2014 was up 64.3 percent compared to the year before.

The most common punitive measure for those caught fiddling with insurance money was fine, with prison sentence with probation and actual imprisonment following in trail.

In an attempt to curb the trend of people taking advantage of loose regulations, a special act on insurance fraud prevention will go into effect starting Sept. 30. The act will punish fraudsters with maximum 10 years’ imprisonment or 50 million won fine.

By Lim Jeong-yeo (kaylalim@heraldcorp.com)