Court: Administrative Sanction Imposed After Duplicate Investigation Without New Evidence Is Unfair

[Asia Economy Reporter Seongpil Cho] The court ruled that if an administrative agency imposes administrative sanctions after conducting duplicate investigations without new evidence, it is procedurally flawed and unjust.

The Seoul Administrative Court, Administrative Division 6 (Presiding Judge Seongyong Lee) ruled in favor of plaintiff A Medical Cooperative in Jeonju, Jeonbuk, in a lawsuit seeking cancellation of a business suspension order filed against the Minister of Health and Welfare and others. The court pointed out, "Each disposition in this case is based on duplicate investigations, which constitutes a procedural defect."

The hospital operated by A Medical Cooperative underwent two on-site investigations by the Ministry of Health and Welfare: from July 2014 to June 2015, and from October 2014 to July 2016. As a result of the investigations, fraudulent receipt of medical benefits was revealed, leading to a business suspension order and a recovery order amounting to 1.53 billion KRW.

The cooperative filed a lawsuit, arguing that "the second on-site investigation is a duplicate administrative investigation prohibited under the Framework Act on Administrative Investigations," and that "all dispositions based on it are illegal."

The court sided with the cooperative, stating, "There is no evidence to recognize that new evidence was secured beyond the suspicious circumstances of illegal acts after the first investigation," and "it is reasonable to view the second investigation as a duplicate investigation."

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