Defendant

A shall be punished by imprisonment for a period of three years and six months, and by a fine of ten million won for a defendant B association, respectively.

Defendant

B. It shall be charged to the Association.

Punishment of the crime

1. Defendant A

(a) In order to establish a cooperative in violation of the Medical Service Act, at least 30 members qualified as promoters shall prepare its articles of incorporation with the capacity of at least 30 persons who have agreed to establish the cooperative and at least 300 persons who have agreed to establish the cooperative shall undergo a resolution at the inaugural general meeting at which a majority of the persons consenting to establishment are present, the total amount of contributions paid to the cooperative members shall be at least 30 million won, and the number of shares of one member shall not exceed 20/100 of the total number of contributions paid to the cooperative, and the president of the C cooperative shall be

Nevertheless, around September 201, the Defendant acquired from D the “B Association” (including Defendant 2’s indication) the appearance of which was formed as if C Cooperatives established a medical institution for the improvement of health and medical services of its members for non-profit purposes, and attempted to establish and operate a medical institution by becoming the substantial representative of B Association.

D has used B association in operating the individual hospital in substance by obtaining authorization for the establishment of B association by unlawful means, such as using the personal information of others without permission or making a false statement of consent for the establishment from those who borrowed the name, and paying the contributions of members with personal funds.

On October 201, the Defendant agreed with D to acquire B association worth KRW 30 million from B association F in Busan Northern-gu, 201.

At the time of B, the Defendant: (a) registered wife G as the president of the B Association on December 2, 201; (b) registered his wife H, I, and J as a director; and (c) obtained authorization from the Busan Metropolitan City Mayor on December 26, 201 to change the president of the B Association to G.

① On December 29, 2011, the Defendant: (a) established the “BD Lvalescent Hospital” in Busan Shipping Daegu; and (b) employs the head of the original department M, etc. and directly administers the hospital.