Arrest Warrant Requested for Cheongyeon Korean Medicine Hospital Chief Director on Fraud Charges

[Asia Economy Honam Reporting Headquarters Reporter Yoon Jamin] An arrest warrant has been requested for the representative director of Cheongyeon Korean Medicine Hospital.

On the 9th, the Gwangju Police Agency announced that an arrest warrant had been requested from the prosecution on charges of fraud against Mr. A, the representative director of Cheongyeon Korean Medicine Hospital.

Mr. A is suspected of borrowing hundreds of billions of won from local wealthy individuals and acquaintances under the pretext of business expansion and operating funds between 2019 and last year, and failing to repay the money.

After receiving a complaint against Mr. A, the police launched an investigation and, believing that he borrowed money without the ability to repay, requested an arrest warrant. However, the prosecution requested supplementary investigation, stating that additional evidence was needed to prove the fraud charges.

The decision on whether to detain Mr. A will be made after the warrant hearing.

Meanwhile, Cheongyeon Medical Group, after opening a Korean medicine hospital in Chipyeong-dong, Seo-gu, Gwangju in 2008, expanded its business nationwide and overseas, which intensified its financial difficulties.

In October of last year, the group attempted to sell Cheongyeon Korean Medicine Hospital and others to a REIT operator and then lease them back, but the plan fell through, pushing the group to the brink of bankruptcy.

Currently, rehabilitation procedures are underway as the court has approved personal rehabilitation applications from the hospital directors.

This content was produced with the assistance of AI translation services.