Traditional Korean Medicine Hospital Pocketed 600 Million Won with Fake Admission Certificates; 114 Staff and Bogus Patients Referred

Doctors, administrative director and other hospital staff caught in mass crackdown
Fraudulently obtained indemnity insurance payouts and medical care benefits

Medical staff at a traditional Korean medicine hospital and fake patients were caught in a police crackdown for issuing fraudulent admission and discharge certificates to people who had not received inpatient treatment, enabling them to fraudulently obtain hundreds of millions of won in insurance payouts and medical care benefits.

A view of the Gwangju Metropolitan Police Agency.

The Gwangju Metropolitan Police Agency’s Major Crimes Investigation Unit said on October 28 that it had arrested a man in his 50s, the administrative director of a traditional Korean medicine hospital, on suspicion of violating the Special Act on the Prevention of Insurance Fraud, the Medical Service Act, and the National Health Insurance Act, among other laws. It also said 113 people, including four hospital staff members such as doctors and 109 fake inpatients, had been referred to the Prosecution Service without detention.

The suspects are accused of issuing false admission and discharge certificates and other documents to patients who did not receive legitimate inpatient treatment over a period of about nine months, from August 4, 2025, to May 18, 2026, and defrauding private insurers and the National Health Insurance Service of a total of about 600 million won in indemnity insurance payouts and medical care benefits.

The investigation found that hospital staff had systematically recruited and referred patients for profit, and that they had also paid and received referral fees totaling about 100 million won for introducing “bogus patients” to the hospital.

Police received intelligence about the alleged crimes in March 2026 and launched a full-scale investigation. They conducted two raids on the hospital and other locations, closely analyzing medical records and financial accounts to identify 109 people who had falsely claimed to be inpatients. They then questioned doctors, nurses, and patients in turn, uncovering an organized scheme that involved recruiting patients, issuing fraudulent documents, and submitting false insurance claims.

A police official said, “Insurance fraud involving false hospital admissions seriously harms the finances of the National Health Insurance system and the soundness of private insurers, while shifting the resulting financial burden directly onto law-abiding members of the public. It is a serious crime.” The official added, “Patients themselves can also face criminal penalties for falsely claiming to be hospitalized and making improper insurance claims, so they should exercise extreme caution.”

This content was produced with the assistance of AI translation services.