A. 1) The Plaintiff is a special public corporation established under the National Health Insurance Act to manage and operate health insurance services, such as prevention of disease and injury, medical treatment and rehabilitation of the citizens, childbirth death, and insurance benefits, etc. for health promotion. 2) A cooperative (hereinafter “instant cooperative”) is a D cooperative under the Consumer Cooperatives Act, which was authorized on December 23, 2005 and completed the establishment registration on January 4, 2006, and the Defendant A is the first president of the instant cooperative from January 4, 2006 to March 3, 2009, the first president of the instant cooperative, from February 7, 2010 to February 27, 2012, and from March 3, 2012 to March 27, 2012, and the Defendant B, the wife of Defendant A, is a person who was registered as a director of the instant cooperative from March 29, 206 to March 20, 200, respectively.

B. Around July 2008, the instant cooperative established a medical institution with the trade name “E Hospital” in the Geum-gu, Busan, around July 2008.

C. Defendant A as the president or director of the instant association, including the payment of medical care benefit costs of the Plaintiff, and Defendant B as the auditor or representative director of the instant association from July 6, 2008 to July 16, 2013 (Provided, That the period from March 3, 2009 to July 24, 2009, excluding the period from July 3, 2009 to July 24, 2009; hereinafter the same shall apply) submitted the specifications of medical care benefit costs and medical care costs to the Plaintiff while operating the instant hospital by having them treat patients at the instant hospital.

Accordingly, from September 11, 2008 to August 31, 2009, the Plaintiff treated the total amount of KRW 947,867,260 as E hospital benefit costs or the amount to be refunded. D.

On January 29, 2019, the Busan District Court of the criminal case against the Defendants committed the following offenses against the Defendants, and the violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud).