Defendant shall be punished by imprisonment for not less than two years and six months.

Punishment of the crime

1. The Defendant violated the Medical Service Act: (a) around 1997, the Defendant constructed the second floor building in Yangsan-si; (b) from around 2002 to around 200, registered and owned the building in the name of F, A; (c) on around 2003, leased the building to G doctors; and (d) G operated the H convalescent hospital in the above building.

Although the Defendant did not intend to take over and operate the above hospital directly, and found ways to establish and operate a medical institution. While the Consumer Cooperatives Act formally used that the Act applies prior to the Medical Service Act, the Defendant recruited its members by establishing and operating a medical institution as a representative of the actual cooperative, and by allowing each member to sign and affix a seal on the written consent to establishment through his/her family members and employees. The amount of money necessary to establish the cooperative is to be borne by the Defendant and to meet the conditions for the establishment and authorization of the cooperative prescribed in the Enforcement Decree of the Consumer Cooperatives Act (the total amount of at least 300 persons consenting to establishment and 30 million won) and falsely recruited its members by establishing the IF (hereinafter referred to as the “IF”) which is a non-profit corporation, and raising its members by establishing the IFF (hereinafter referred to as the “IF”), despite the fact that the number of contribution units per member is set by the articles of association within the limit of 1/5 of the total number of contribution units, the Defendant paid out most of the contributions from the head of the cooperative and operated the IF.

On December 2007, the Defendant pretended to prepare the articles of incorporation in a formal manner by lending the name of the branch in the name of the branch, and promised to borrow the name or discount medical expenses when establishing a medical institution.