As pet insurance booms in Korea, so does fraud
Published: 12 Jul. 2025, 18:40
Updated: 13 Jul. 2025, 15:40
Audio report: written by reporters, read by AI
![A veterinarian carries a dog at an animal clinic in Dongjak District, southern Seoul, on Aug, 5, 2024. [YONHAP]](https://koreaseafood.online/data/photo/2025/07/13/ed443f8c-14b0-484a-a8ae-79335090623e.jpg)
A veterinarian carries a dog at an animal clinic in Dongjak District, southern Seoul, on Aug, 5, 2024. [YONHAP]
A middle-aged Korean man who owns four dogs made has more than 120 visits to a veterinary clinic over the past 27 months. Using pet insurance, he claimed 58 million won ($42,000) to cover supposed treatment and surgery costs. But an investigation by his insurance company later revealed that the pet owner had colluded with his son, head of the veterinary clinic he frequented, to falsify the dogs' diagnoses and medical records in order to receive payouts.
The scam is one of a growing number of pet insurance frauds as more people in Korea become pet owners and enroll their animals in insurance plans.
The total number of pet insurance subscriptions reached 162,111 as of the end of last year — more than a 20-fold increase since 2018, per the General Insurance Association of Korea and the Korea Insurance Research Institute.
Nine nonlife insurance companies, including Samsung Fire & Marine, DB Insurance, KB Insurance and Hyundai Marine & Fire, offer pet insurance covering dogs and cats, typically including their treatment costs, liability for dog bites and funeral expenses.
Although the market is expanding, experts say there is insufficient transparency in the system and legislation to minimize fraud.
One insurer reported 58 fraud cases in the first half of this year alone — more than six times higher than was recorded in the same period of last year.
"Since all veterinary treatment costs are classified as noncovered, there is a high risk that a loss structure similar to that seen in private health insurance — caused by overtreatment — could emerge," said a General Insurance Association spokesperson. “There are many suspicious claims, but they’re hard to detect.”
Common pet insurance scams
![A dog is treated at a veterinary clinic. [JOONGANG ILBO]](https://koreaseafood.online/data/photo/2025/07/13/4a887fd2-d03d-4725-a4f1-df5bf5a1d7d7.jpg)
A dog is treated at a veterinary clinic. [JOONGANG ILBO]
So, what does pet insurance fraud look like?
A man in his 40s adopted over 30 stray dogs and received a year’s worth of free insurance up to 10 million won, which is offered by the Seoul Metropolitan Government to those who adopt strays. He then asked clinics to mislabel conditions — reporting a covered injury like cruciate ligament rupture instead of a noncovered one like a luxating patella — and billed neutering surgeries as more expensive laser treatments.
In other cases, owners enrolled a single pet in multiple insurance plans and submitted duplicate claims for the same procedure, listing different family members as the claimant. Some insured only one dog but used the plan to cover treatment for multiple pets of the same breed, bypassing the cost of insuring each animal. Others who owned pets with pre-existing conditions — which are typically not covered by insurance — re-enrolled their animal in insurance plans under a new name and owner, often the policyholder’s spouse, to hide their medical history and make their conditions eligible for insurance.
Low registration rate hampers oversight
A significant issue with pet insurance is the lack of transparency. Only 30 percent of dogs in Korea are officially registered, and cats aren’t required to register at all. Even for registered pets, identification can be challenging.
“Pet ID tags can be swapped, and even vets can’t identify animals based solely on nose prints,” a DB Insurance official said.
![A dog takes a walk with its owner in Daejeon on Feb. 16, 2025. [JOONGANG ILBO]](https://koreaseafood.online/data/photo/2025/07/13/f3b160af-63ed-4a00-a2fb-065254743aa3.jpg)
A dog takes a walk with its owner in Daejeon on Feb. 16, 2025. [JOONGANG ILBO]
Another issue is the lack of standardized fees and disease codes in veterinary care. Unlike human healthcare, there’s no fixed pricing system, and disease classification isn’t standardized.
The Ministry of Agriculture recently introduced 3,511 animal disease categories and 4,930 diagnostic codes — including for initial visits and hospitalizations — but their use remains voluntary, leaving leeway for some clinics to work with pet owners in committing insurance fraud. Also, existing penalties for violating veterinary regulations are low and criminal charges are rare.
Push for reform and standardization
To address growing concerns, Korea’s financial authorities advised insurers in May to shorten the renewal cycle for pet insurance to one year and increase the policyholder’s share of costs to 30 percent. While some insurers have adopted these changes, they’re cautious about going too far and driving consumers away.
“Raising out-of-pocket costs due to fraud could hurt honest pet owners,” an industry source said. “People love their pets, but many don’t realize that misusing insurance this way is a crime.”
Experts argue that standardizing fees and improving transparency are crucial for reducing fraud and enabling consumers to better predict costs.
“Setting clear, uniform prices and disease classifications will prevent fraud and improve trust in the system,” said Han Jin-hyun, a researcher at the Korea Insurance Research Institute.
Kim Kyu-dong, head of a unit at KB Insurance, emphasized the need for collaboration among insurers, government agencies, and the veterinary community. “Insurers can use treatment and claim data by breed and age to design better products, while the government should improve the pet registration system for more accurate identification," he said.
![President Lee Jae Myung holds a dog during his presidential campaign in Chuncheon, Gangwon, on May 30. [JOONGANG ILBO]](https://koreaseafood.online/data/photo/2025/07/13/2aa35b87-ea3e-4f84-af65-f7a92f1b6176.jpg)
President Lee Jae Myung holds a dog during his presidential campaign in Chuncheon, Gangwon, on May 30. [JOONGANG ILBO]
President Lee Jae Myung has pledged to promote pet insurance by introducing standardized veterinary fees. On June 30, the Presidential National Policy Planning Committee held a meeting with animal rights groups to discuss the issue.
“If necessary, we may consider making standard fee implementation mandatory,” said lawmaker Yoon Joon-byung of the Democratic Party. “We’ll also work to strengthen veterinarians’ legal responsibilities and increase penalties through legislation.”
BY PARK YU-MI [[email protected]]
with the Korea JoongAng Daily
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