'Fraudulent Receipt of Long-term Care Benefits' Yoon Seok-yeol's Mother-in-law Claims in Appeal Trial "200 Million Won Is a Loan, Not an Investment"

Choi, the mother-in-law of former Prosecutor General Yoon Seok-yeol, who is accused of opening a nursing hospital and embezzling nursing care benefits [Photo by Yonhap News]

[Asia Economy Reporter Kim Daehyun] Choi Mo (74), the mother-in-law of former Prosecutor General Yoon Seok-yeol, who was indicted on charges of fraudulently receiving over 2.2 billion KRW in nursing care benefits from the National Health Insurance Service and sentenced to imprisonment in the first trial, denied all charges at the first formal appeal trial. Choi's side claimed, "She did not participate in the establishment and operation of the medical institution in a leading position," while the prosecution countered, "Choi actively participated in the crime, including investing 200 million KRW in the formation of the basic assets of the medical foundation in 2012."

On the morning of the 6th, the Seoul High Court Criminal Division 5 (Presiding Judges Yoon Gang-yeol, Park Jae-young, Kim Sang-cheol) held the first appeal trial for Choi, who was indicted for fraud under the Act on the Aggravated Punishment of Specific Economic Crimes and violation of the Medical Service Act and sentenced to imprisonment in the first trial. Since this was a formal trial date, not a preparatory hearing, Choi appeared in court in person.

In court, Choi's defense attorney stated, "The original trial held the defendant responsible as an accomplice despite the lack of agreement or awareness of the crime," citing factual errors and legal misinterpretation as reasons for the appeal. The attorney argued, "Even if the defendant's guilt is acknowledged after much concession, the sentencing was extremely disproportionate compared to the sentences received by other related parties in different cases."

On the other hand, the prosecutor pointed out, "The establishment of a medical foundation corporation requires securing basic assets, which must come from donations or contributions," and added, "It is prohibited to recover the contributed funds through the profits of the medical corporation, but the defendant agreed with other accomplices to recover the invested amount." The prosecutor further emphasized, "For the purpose of operating the hospital, the defendant inserted her son-in-law Yoo Mo as the administrative director, was involved in providing operating funds and purchasing hospital equipment, and even took out loans using her own real estate as collateral," urging the court to dismiss Choi's appeal.

In response, the defense attorney said, "The defendant's intention during the foundation establishment process was a 200 million KRW 'loan,' and contrary to the prosecution's claim, she did not distinguish between a loan and an investment."

The court scheduled the next hearing for 2:30 PM on the 28th.

Previously, Choi was non-detained indicted on charges of fraudulently receiving 2.29 billion KRW in nursing care benefits from the National Health Insurance Service while jointly establishing and operating a nursing hospital in Paju, Gyeonggi Province, with three partners from 2013 to 2015 (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes).

Initially, the investigation began in 2015 at the Paju Police Station, and only the three partners were booked. They were tried, and in 2017, one received a 4-year prison sentence, while the other two were sentenced to 2 years and 6 months with 4 years of probation, respectively.

Choi, who was a co-chairperson, was not booked because she resigned from the chairperson position in 2014 and received a "release from responsibility memorandum" stating she would not be held accountable for hospital operations. However, a reinvestigation began last April after Choi, along with former Prosecutor General Yoon Seok-yeol, his wife Kim Geon-hee, and others, were reported for various charges by Choi Kang-wook, leader of the Open Democratic Party, and Hwang Hee-seok, a senior member of the same party.

The first trial sentenced Choi to three years in prison and ordered her immediate detention. At that time, the court stated, "The defendant's crime worsened the finances of the National Health Insurance Service, causing harm to the entire nation, and the responsibility is heavy. Nevertheless, the defendant shifts responsibility even up to this trial, refuses to admit wrongdoing, and the amount defrauded exceeds 2 billion KRW, causing significant damage," as the reason for sentencing.

Meanwhile, Choi's side filed a bail request on the 13th of last month, arguing there is no risk of flight or evidence tampering.

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