A. Defendant A and B’s criminal trial process (i.e., B) is the chief director of the Incorporated Foundation C.

In addition to doctors and medical corporations, only non-profit corporations established by the Civil Act or special Acts can establish a medical institution. A person who is not qualified to establish a medical institution can not establish a medical institution. However, Defendant B received KRW 1,500,000 per month from Defendant A in return for lending the name of non-profit corporation C, a non-profit corporation, to establish a medical institution in collusion with Defendant A who is not qualified to establish a medical institution.

B. On January 31, 2012, Defendant A and B: (a) reported the establishment of a medical institution under the name of “D Council member (hereinafter “instant hospital”); and (b) from that date, Defendant A lent the name of the non-profit corporation incorporated into a medical institution by having the instant hospital employ medical doctors, nurses, and other employees and conduct medical treatment against the patients.

Defendant A, due to the above violation of the Medical Service Act, was sentenced to a suspended sentence of two years for one year of imprisonment by the judgment of the Incheon District Court on September 25, 2014, and the sentence became final and conclusive. Defendant B was sentenced to one year of imprisonment and six months of imprisonment by the judgment of the Incheon District Court on January 23, 2014.

B. The Defendants filed a claim for insurance benefits (medical expenses) under the Industrial Accident Compensation Insurance Act with respect to the diagnosis and treatment of the instant hospital, and the Plaintiff paid totaling KRW 47,593,440 to the instant hospital from August 14, 2012 to July 23, 2013.

C. On July 31, 2013, Defendant A and B, who closed the instant hospital, filed a report on discontinuance of business on the ground of business depression with respect to the instant hospital.

[Grounds for recognition] between the Plaintiff, Defendant A, and Incorporated Foundation C, Article 150(3) and (1) of the Civil Procedure Act, the fact that there is no dispute between the Plaintiff and the Defendant B, and evidence Nos. 1 through 9, respectively.