▲ Court
The chief executive officer and an executive of Gwangdeok Anjeong, an oriental medicine clinic network company, have been sentenced to prison terms in their second trial on charges of securing fraudulent loans worth tens of billions of won.
On the 24th, Criminal Division 13 of the Seoul High Court (Presiding Judges Kim Mu-shin, Lee Woo-hee, and Yoo Dong-gyun) sentenced the CEO of Gwangdeok Anjeong, surnamed Joo, and an executive, surnamed Park, to four years and three years in prison, respectively, upholding the lower court's rulings.
However, the court decided not to take them into legal custody immediately, stating that "it is difficult to see any risk of destruction of evidence or flight at this stage."
For 14 franchise branch directors who were indicted together and underwent appellate trials, the court upheld the lower court's sentences of suspended prison terms.
Like the first trial, the second trial found Joo and Park guilty of transferring Gwangdeok Anjeong funds temporarily to prospective clinic founders so they could obtain high-balance certificates, and then using those certificates to secure guarantees from the Korea Credit Guarantee Fund (KODIT).
The court pointed out, "The actions of Joo and Park ultimately amounted to deceiving KODIT, and KODIT issued the guarantees based on that deception," adding, "The defendants are also recognized as having had the intent to defraud and the intent for unlawful acquisition."
Joo was indicted on charges of securing KODIT guarantees 35 times worth a total of KRW 25.9 billion between August 2020 and February 2023 by deceiving that falsely inflated deposit balances were the personal funds of founding oriental medicine doctors and dentists.
Investigations showed that Park helped deceive KODIT officials during a similar period by recruiting oriental medicine doctors and dentists and temporarily depositing and withdrawing corporate funds.
Established in 2017, Gwangdeok Anjeong once operated around 40 franchised oriental medicine clinics and hospitals nationwide. CEO Joo is the son of Democratic Party of Korea lawmaker Joo Cheol-hyun.
(Photo: Yonhap News)
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