Defendant

A Imprisonment with prison labor for three years and for two years and six months, respectively.

Punishment of the crime

G (Death on May 30, 2017) is a standing director of “medical corporation I” located at H at the time of Busan, a director of the said corporation, and Defendant B, as a medical person, a representative of the said corporation in the form of the said corporation.

1. A public offering-related G and Defendant A jointly invested in order to operate the hospital, and Defendant B, who is a doctor, is in the form of a hospital representative, and G overall control over the operation of the hospital and Defendant B conspired to open and operate the convalescent hospital by providing the name of the establishment of the medical institution under the condition that the medical institution will be paid KRW 10 million monthly.

2. The establishment of a medical institution in violation of the Medical Service Act is limited to persons eligible to establish a medical institution, such as medical personnel, the State, and a medical corporation, and is prohibited from establishing a medical institution under the name of a non-medical person, while the medical foundation that establishes a medical institution shall meet the requirements for its establishment and shall not aim at profit-making;

Nevertheless, around April 2, 2008, the Defendants and G employed employees, such as doctors, nurses, and physical technicians, and provided them with the treatment room, hospitalization room, and physical treatment room, etc. at H in Busan Metropolitan City, and established the J convalescent Hospital under the name of Defendant B, and operated from that time until October 31, 2013.

In addition, around August 6, 2013, the Defendants and G established a foundation which can establish a medical institution under the name of a non-profit corporation, using the fact that it is possible to establish a medical institution. On November 1, 2013, the Defendants and G established a medical corporation “medical corporation IJ convalescent hospital” at the above location, and received the employees and facilities of “J convalescent hospital” from the time of receipt to July 2016.

As a result, Defendants and G conspired to establish a medical institution by lending the name of the non-medical person.

3. A person who is not entitled to establish a medical institution in violation of the Act on the Aggravated Punishment, etc. of Specific Economic Crimes (Fraud) shall employ his/her doctor to perform medical practice.