A. On March 31, 2008, the Plaintiff decided to set up a branch office of the medical corporation with KRW 22 million as well as KRW 32 million as an incorporated association B (hereinafter “medical corporation”) on March 31, 2008. After reporting the establishment of a medical institution to the public health clinic in Macheon-si, the Plaintiff operated D (hereinafter “instant hospital”) an incorporated association (hereinafter “instant hospital”) from April 18, 2008 to June 16, 201 with respect to such medical treatment, the Plaintiff claimed medical care benefit expenses from the Defendant to receive a total of KRW 592,623,290.

As to the above amount, the defendant decided to recover KRW 592,587,580 from a medical corporation and the defendant jointly and severally, and received KRW 144,00,60 from a medical corporation.

B. The main contents of the legislation relating to the instant case are as follows:

(2) No person other than those falling under any of the following subparagraphs may establish a medical institution:

In such cases, a medical doctor may establish a general hospital, hospital, convalescent or medical clinic, a dentist may establish a dental hospital or dental clinic, an oriental medical doctor may establish a oriental medical hospital, convalescent hospital or oriental medical clinic, and a midwife may establish a midwifery clinic only.

1. A doctor, a dentist, a herb doctor, or a midwife;

2. The State or local governments;

3. A corporation established for the purpose of rendering medical services (hereinafter referred to as a "medical corporation");

4. Non-profit corporations established under the Civil Act or special Acts;

5. A quasi-government agency under the Act on the Management of Public Institutions, a local medical center under the Act on the Establishment and Management of Local Medical Centers, or the Korea Veterans Welfare and Healthcare under the Korea Veterans Welfare and Healthcare Corporation Act, shall provide medical care benefits (excluding nursing and transfer) to the following medical care institutions:

In such cases, the Minister of Health and Welfare shall provide medical institutions prescribed by Presidential Decree as inappropriate for medical care institutions.