President Yoon's Mother-in-Law 'Fraudulent Receipt of Nursing Care Benefits' Case Supreme Court Verdict Today

Violation of Medical Service Act and Fraud under Specific Economic Crimes Act
First Trial Guilty → Second Trial Acquitted Reversed
Key Issue: Whether Accomplice Liability for Hospital Establishment and Fraudulent Receipt of Medical Benefits is Recognized

Choi Eun-soon, mother-in-law of President Yoon Suk-yeol. [Image source=Yonhap News]

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The court's final verdict on the guilt or innocence of Choi Eun-soon (75), mother-in-law of President Yoon Seok-yeol, who was indicted for illegally opening a nursing hospital and fraudulently receiving nursing care benefits, will be announced on the 15th.

Since the first trial's guilty verdict was overturned in the second trial, attention is focused on the Supreme Court's decision on this day.

The Supreme Court's 2nd Division (Presiding Justice Lee Dong-won) will hold the sentencing hearing for Choi, who was indicted on charges of violating the Medical Service Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes, starting at 10:15 a.m. on the 15th.

Choi was indicted on charges of establishing a formal non-profit medical foundation with three partners including Mr. Joo, despite not being a medical professional, and opening and operating a for-profit nursing hospital (violation of the Medical Service Act), and from May 26, 2013, to May 16, 2015, embezzling approximately 2.294 billion KRW in nursing care benefits from the National Health Insurance Service (fraud under the Act on the Aggravated Punishment of Specific Economic Crimes).

Mr. Joo and the other three partners were indicted earlier; in 2017, the main perpetrator Mr. Joo was sentenced to four years in prison, and the other two received two years and six months in prison with a four-year probation, which was finalized. Whether Choi could be considered an accomplice with them became a key issue in the trial.

In court, Choi's side claimed innocence, stating that she only lent some funds necessary for the establishment of the medical foundation led by Mr. Joo, accepted the position of co-chairman of the foundation, but did not participate in the opening, operation, or profit acquisition of the nursing hospital.

However, the first trial court recognized all charges against Choi as guilty, sentenced her to three years in prison, and ordered her detention in court.

Under the current Medical Service Act, only medical professionals or medical corporations can open medical institutions, and the court judged that Choi conspired with the other accomplices to create the appearance of establishing a medical corporation and deceived the National Health Insurance Service to receive nursing care benefits.

The court stated, "Mr. Joo and others only created the appearance of establishing the medical foundation in this case formally, then opened the hospital for profit, and the defendant, fully aware of this fact, went beyond merely investing funds in the medical foundation and participated in the establishment, maintenance, and operation of the foundation, thereby functionally controlling and essentially contributing to the violation of the Medical Service Act by Mr. Joo and the other three. It is reasonable to recognize the defendant as an accomplice."

Meanwhile, Choi officially resigned as director of the medical foundation on July 21, 2014. Before her resignation, in May 2014, she received a letter of exemption from liability and a certificate. The letter of exemption, written in the name of another partner, stated that Choi was not involved in hospital operation or management and thus would not be held civilly or criminally liable. Another certificate, also in another partner's name, stated that the partner, not Choi, had been managing the medical foundation since its acquisition and would take responsibility for any civil or criminal issues arising from Choi's resignation.

Regarding this, the court said, "The fact that the defendant received the letter of exemption and certificate does not affect the establishment of her criminal liability; rather, it suggests that the defendant was involved in the establishment and operation of the medical foundation and hospital before that."

However, the second trial court's judgment was different.

The second trial court stated, "The act of a non-medical person establishing a medical corporation should be distinguished from the act of a non-medical person opening a medical institution," and added, "It is difficult to conclude beyond reasonable doubt that the defendant conspired to open and operate a nursing hospital by establishing a medical corporation as a means to evade the application of the Medical Service Act to non-medical persons around September 2012, when the defendant signed contracts with partners."

Furthermore, the court judged that it was difficult to see Choi's involvement in the establishment of the medical foundation or hospital operation as conspiring or participating in the act of creating the appearance of a non-profit medical corporation and then opening a medical institution for profit, as Mr. Joo and others did.

The court said, "Based solely on the evidence submitted by the prosecution, it is insufficient to conclude beyond reasonable doubt that the defendant recognized and tolerated that the medical foundation was only formally established and maintained, and that non-medical persons like Mr. Joo actually opened and operated the hospital, or that the defendant conspired or functionally controlled the hospital's opening and operation through essential contribution. There is no other evidence to support this," and acquitted her of violating the Medical Service Act.

Also, the court acquitted her of the fraud charges, stating that there was insufficient evidence to prove the crime given the lack of evidence supporting the Medical Service Act violation.

Son Kyung-sik, the lawyer who defended Choi, said immediately after the acquittal, "This case, initiated by accusations from politician Choi Kang-wook and Hwang Hee-seok, who had no interest in the medical corporation or hospital, went through twists and turns due to intentional distortion of the case and evidence concealment by some prosecutors at the Seoul Central District Prosecutors' Office, but ultimately reached a just conclusion through the court's impartial and thorough evidence examination and legal judgment."

Son added, "The new evidence confirmed during the appeal trial was already objective evidence known to the prosecution from disputes among the parties involved. If it had been disclosed during the investigation and first trial, there would have been no need for a lengthy trial. The biased attitude of some prosecutors should be strongly criticized."

Initially, Choi was not investigated based on the letter of exemption and other documents when Mr. Joo and others were indicted. After reinvestigation, she was brought to trial in November 2020, one month after then-Minister of Justice Choo Mi-ae ordered the strengthening of the investigation team probing suspicions involving President Yoon's family and close associates, when Yoon was Prosecutor General.

At that time, the head of the Seoul Central District Prosecutors' Office was Prosecutor Lee Sung-yoon, who was classified as a representative pro-government figure within the prosecution.

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