South Korea’s Health Ministry came under fire for using the money it raised from this year’s tobacco taxes for projects not related to smoking prevention, during a two-day parliamentary audit session which started Monday in Sejong.
The criticism toward the ministry came about a month after it announced it would raise tobacco prices by a whopping 80 percent in the name of improving public health.
According to Rep. Kim Yong-ik of the main opposition party, the ministry set aside 990 million won ($931,300) for telemedicine, which has been fiercely opposed by the nation’s health care providers, from the National Health Promotion Fund which is partly raised by tobacco taxes.
The lawmaker’s findings raised concerns about the legitimacy of the ministry’s recent push to hike tobacco prices by January 2015.
“The National Health Promotion Fund is already being used for inappropriate purposes,” the lawmaker said. “This makes it even more questionable that the raised tobacco taxes, if implemented, will be used for the right purposes.”
The central government’s proposal on cigarette prices has been criticized by a number of politicians, including Kim Young-geun of the main opposition party, as a “trick” to make up for a tax revenue shortage. The tobacco tax, if raised next year, could boost tax revenue by 2.7 trillion won per year, according to Korea Institute of Public Finance. The finance agency also found that raising the current tobacco prices by 80 percent ― by 2,000 won ― would boost the tax revenue the most in its report submitted to the government.
The Health Ministry has been insisting that the revenue raised from the increased tobacco taxes will be used for antismoking programs.
Meanwhile, the central government launched the ongoing pilot program for telemedicine services this month and it is likely to be legalized by next year.
The plan, however, has been fiercely opposed by the nation’s health care providers and some politicians, who question the safety and necessity of the program.
For example, the telemedicine plan overlaps with the currently available medical services whereby nurses make home visits to patients who are immobile or live in remote areas, according to a representative body of South Korean nurses.
Rep. Ahn Cheol-soo predicted that more than 19 trillion won would be needed for the telemedicine services, if they are legalized next year.
It will cost about 350,000 won to equip a diabetic with the necessary equipment, such as glucose meters, while a patient with high blood pressure would need some 370,000 won, he said.
“The cost of the program, whether it is paid by the government or individuals, will mostly likely only benefit the companies that produce the needed devices and equipment (for telemedicine),” he said.
By Claire Lee (
dyc@heraldcorp.com)
