A. On May 16, 2007, the Defendants established a medical corporation C (hereinafter “the instant foundation”) along with “C” (hereinafter “the instant foundation”) and controlled all of the tasks, such as personnel management and fund execution of the CD Hospital (hereinafter “D Hospital”) established by the said foundation. The instant foundation is a corporation established for the purpose of operating the medical institution.

B. Although a person, other than a doctor, etc., was prohibited from establishing a medical institution, the Defendants established a medical corporation formally, and practically, the Defendants intended to operate the hospital by employing a doctor under the Defendants’ responsibility.

Accordingly, on April 22, 2007, Defendant A contributed KRW 1.5 billion to Defendant B, and Defendant B contributed KRW 400 million to purchase a building and its site in Daejeon-gu, Daejeon-gu, and then donated it to the foundation’s fundamental property.

Afterwards, the Defendants borrowed the names of the Defendants’ relatives from F, G, H, I, and J and appointed them as directors and auditors of the said Foundation. The facts did not hold a general meeting of promoters on April 22, 2007 for the establishment of a medical corporation. However, from five persons, such as F, etc., prepared false minutes of the meeting necessary for establishing a medical corporation by lending the name of the promoters, and submitted them to Daejeon Metropolitan City. On May 15, 2007, the Defendants obtained permission for the establishment of the “C” of the Medical Service Act from Daejeon Metropolitan City.

C. On May 16, 2007, the Defendants: (a) completed the registration of incorporation with Defendant A as the representative director; and (b) established a hospital under the name of “D Hospital” after having medical facilities, medical doctors, nurses, etc. at the above place on the 28th of the same month.

The Defendants, while operating a hospital from May 2007 to June 2017, had a patient employ a doctor to treat the patient, filed a request for examination with the Health Care Benefit Review and Assessment Service based on the health care benefit cost statement, and received the notification of the examination result from the Defendant from June 2007 to July 2017 in total as the health care benefit cost.