"Embezzlement of 4.6 Billion Won Over 7 Instances, Saying 'No Problem Even If I Embezzle 1,000 Won'"

Rep. Shin Hyun-young Examines Methods of Mr. Choi in NHIS Embezzlement Case...
Amount Increased from 17.4 Million Won Next Day to Tens of Millions → 300 Million → 4.1 Billion Won
Criticism of 'Lack of Management System' for Failing to Filter Personal Account Transfers

[Asia Economy Reporter Jo In-kyung] Choi Mo, a team leader in his 40s accused of embezzling 4.6 billion KRW from the National Health Insurance Service (NHIS) and fleeing overseas, initially siphoned off just 1,000 KRW into his own account. After the NHIS failed to detect these small transfers, Choi gradually increased the embezzled amounts to tens of millions and then billions of won, ultimately diverting 4.17 billion KRW in a single transaction just before fleeing abroad.

According to data submitted by the NHIS to Shin Hyun-young, a member of the National Assembly’s Health and Welfare Committee from the Democratic Party of Korea, on April 27 of this year, Choi manipulated account information to deposit 1,000 KRW from medical fees that had been withheld due to bond seizures into his own account.

After transferring 1,000 KRW without any issues, Choi sent 17,406,980 KRW to his account the next day using the same method. Subsequently, he transferred 32,737,550 KRW on May 6, 59,027,370 KRW on May 13, 26,254,620 KRW on July 21, and 316,329,927 KRW on September 16, progressively increasing the embezzled amounts. Just before leaving the country on the 21st of this month, he siphoned off 4,171,497,955 KRW.

In particular, Choi took leave early in the embezzlement process. On April 27, the day after embezzling 1,000 KRW and transferring about 17.4 million KRW to his account, he took a half-day off in the morning. On May 6, when he embezzled about 32.7 million KRW, he took a full day of annual leave. Representative Shin stated, "It is presumed that he used leave to prepare for fleeing in case the embezzlement was detected."

After embezzling a total of 4.623 billion KRW over seven separate occasions, Choi took annual leave from September 19 to 26 and disappeared. The NHIS confirmed the embezzlement during a work inspection on the morning of the 22nd, one day after the last embezzlement occurred.

Representative Shin pointed out, "Choi identified loopholes through several attempts and boldly siphoned off 4.1 billion KRW at the end. If he had been caught during the first or second attempts, the massive embezzlement of 4.6 billion KRW could have been prevented." She added, "This case exploits the NHIS’s vulnerable payment system, where a team leader has full authority to register and change payment account numbers. While it is clearly an individual’s wrongdoing, it also reflects the absence of a proper management system at NHIS and a lack of discipline in a public institution."

Upon confirming the embezzlement, the NHIS immediately filed a criminal complaint with the police and froze the accounts. The Ministry of Health and Welfare has been conducting a special joint audit of the NHIS for two weeks since the 25th.