Supreme Court Acquits President Yoon's Mother-in-Law of 'Fraudulent Nursing Care Benefits' Charges... "Functional Control Not Proven"

Guilty in 1st Trial → Not Guilty in 2nd and 3rd Trials
Charges of Medical Law Violation and Fraud under Special Act
'Functional Act Control' Not Proven for Accomplice Establishment
Reported by Minister Chu Mi-ae Era: Choi Kang-wook and Hwang Hee-seok... Former Prosecutor Lee Sung-yoon Led Investigation

Supreme Court, Seocho-dong, Seoul.

[Asia Economy Reporter Choi Seok-jin, Legal Affairs Specialist] The acquittal of Choi Eun-soon (75), mother-in-law of President Yoon Seok-yeol, who was indicted on charges of illegally opening a nursing hospital and fraudulently receiving nursing care benefits, has been finalized.

The Supreme Court's 2nd Division (Presiding Justice Lee Dong-won) on the 15th upheld the lower court's verdict acquitting Choi in the final appeal hearing on charges of violating the Medical Service Act and fraud under the Act on the Aggravated Punishment of Specific Economic Crimes.

The court stated, "It is difficult to find that it has been sufficiently proven beyond reasonable doubt that the defendant conspired with accomplices in the confirmed prior case to jointly establish and operate the nursing hospital or exercised functional control through essential contribution to the crimes such as violation of the Medical Service Act."

It added, "There is no error affecting the judgment such as violating the principles of logic and experience, exceeding the limits of free evaluation of evidence, misunderstanding or omission of legal principles regarding the lawful requirements of nonprofit medical corporations, establishment of unqualified medical institutions using corporate personality, conspiracy in joint perpetration, and functional control."

Choi was indicted on charges of violating the Medical Service Act by establishing and operating a profit-oriented nursing hospital after formally establishing a nonprofit medical foundation with three partners including Mr. Joo, despite not being a medical professional, and defrauding approximately 2.294 billion KRW in nursing care benefits from the National Health Insurance Service between May 26, 2013, and May 16, 2015, under the Act on the Aggravated Punishment of Specific Economic Crimes.

Initially, Choi was not investigated based on exemption letters when Mr. Joo and others were indicted. However, after reinvestigation and 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 in November 2020, Choi was brought to trial. At that time, the head of the Seoul Central District Prosecutors' Office, who handled the investigation and indictment, was Chief Prosecutor Lee Seong-yoon, known as a pro-government figure within the prosecution.

The key issue in the trial was whether Choi could be considered a co-conspirator with the other partners.

Choi’s defense argued that she only lent part of the funds necessary for the foundation’s establishment led by Mr. Joo, accepted the position of co-chairperson of the foundation, but did not participate in the establishment, operation, or profit acquisition of the nursing hospital, asserting her innocence.

However, the first trial court found all charges against Choi guilty, sentencing her to three years in prison and ordering her detention in court.

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

Choi formally resigned as chairperson of the medical foundation in July 2014. Two months prior to her resignation, she received exemption letters and certificates from other partners. Contrary to Choi’s claim that these documents prove she was not involved in the foundation or hospital’s establishment and operation, the court viewed them as evidence suggesting that Choi was involved in the foundation and hospital’s establishment and operation before that time.

However, the second trial court’s judgment differed. The appellate court found it difficult to recognize that Choi exercised functional control through essential contribution to the crimes, which was a sign of joint perpetration acknowledged by the first trial court.

The court stated, "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, while non-medical persons such as Mr. Joo actually established and operated the hospital, or that she conspired in the hospital’s establishment and operation or exercised functional control through essential contribution to the crimes."

Son Kyung-sik, the lawyer who defended Choi, said immediately after the second trial 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 many twists and turns due to intentional distortion of the case and evidence concealment by some prosecutors at the Seoul Central District Prosecutors' Office. The newly confirmed evidence at the appellate trial was objective evidence already known to the prosecution amid disputes among the parties involved. If this had been disclosed during the investigation and first trial, there would have been no need for a lengthy trial."

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