Gwangju Police Launch Investigation into Cheongyeon Medical Group on Fraud Allegations

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] The Gwangju Police have launched an investigation into fraud allegations against Cheongyeon Medical Group, which recently filed for corporate rehabilitation proceedings.

On the 27th, according to the Gwangju Metropolitan Police Agency, the Gwangju Police Intelligent Crime Investigation Unit plans to closely examine various suspicions, including investment fraud involving Cheongyeon Medical Group.

Since opening Cheongyeon Korean Medicine Hospital in Chipeong-dong, Seo-gu, Gwangju Metropolitan City in 2008, Cheongyeon Medical Group has operated 14 hospitals and clinics nationwide and expanded its activities by establishing medical institutions overseas.

During this process, aggressive business expansion led to worsening cash flow problems, and it is known that the group borrowed money from wealthy acquaintances over several years.

In this process, Representative A of Cheongyeon had been paying interest to creditors but suddenly filed for general rehabilitation at the Seoul Bankruptcy Court on the 12th.

It is also reported that one investor has filed a complaint accusing the group of investment fraud.

A representative of the Gwangju Intelligent Crime Investigation Unit stated, “We will summon the complainant for investigation and conduct a strict inquiry into the investment fraud allegations against Cheongyeon Group.”