Hampyeong County Nursing Home Director's 'Subsidy Misuse' Criminal Record Reexamined... Competency Controversy

Forgery of Medical Records and Improper Long-Term Care Benefits Payment... 30 Million Won Fine Confirmed

CEO Stepped Down but Held Actual Top Decision-Making Role via 'General Power of Attorney'

In Response to Criticism Over 'Facility Direct

The interior of the 'Mujigae Disabled Workers' Workplace' in Hampyeong-gun, Jeollanam-do, was shrouded in darkness despite it being broad daylight. It even exuded a bleak atmosphere, like an abandoned underground storage room.

The restroom was so dark that not a single ray of light entered, making it difficult to take a step inside, and the workshop, which was usually bustling with the 'whirring' sound of machines and the busy hands of disabled workers, now appeared to be a useless space that no one visited.

This was because Foundation A, which recently lost the re-contracting bid, claimed ownership of the facility site and unlawfully cut off the electricity.

The 'Mujigae Disabled Workers' Workplace' located in Hampyeong-gun, Jeollanam-do, is dark despite being broad daylight due to a power outage.
Photo by Jin-Hyung Park

In this situation, Mr. B, who received a 'general power of attorney' from the CEO of Foundation A and is effectively acting as the highest decision-maker, as well as serving as the director of the Hampyeong County Nursing Home where the main electrical facilities of the site are located, has become the center of controversy.

At the same time, Mr. B's past criminal record of being fined 30 million KRW for 'misappropriation of national subsidies' has been re-examined, and voices both inside and outside the foundation are calling for the replacement of the facility director.

According to a comprehensive report by the Honam Headquarters of Asia Economy, Mr. B was sentenced in the first trial to 8 months in prison with a 2-year probation for charges including fraud, forgery of official documents, and use of forged documents from 2021 to 2022, and a fine of 30 million KRW was confirmed in the second trial.

Mr. B was indicted for fraudulently receiving long-term care benefits (approximately 76 million KRW) from the National Health Insurance Corporation by forging medical records between September 2017 and September 2019 while serving as the CEO of Foundation A.

After the confirmed verdict (second trial), he stepped down from the CEO position to a director role last December, stating that he "felt inexperienced and wanted to step down."

However, he retained his position as the director of the nursing home, which he had held since 2017, and contrary to his declaration to take responsibility, he is known to have received a 'general power of attorney' from the CEO and is effectively acting as the highest decision-maker to this day.

The CEO explained the reason for issuing the general power of attorney by saying, "I do not want to be involved in this matter, and even if I know about it, I cannot speak."

Regarding the issue of misappropriation of national subsidies, since no internal disciplinary procedures have been carried out within the foundation, it is expected that the matter was settled by his resignation from the CEO position.

Article 54 (Reasons for Disciplinary Action) of the Foundation's Operating Regulations states that disciplinary action should be taken when a serious act that damages public interest or harms the dignity or reputation of the corporation (facility) occurs, but this regulation appears to have been ineffective.

An insider from the foundation said, "The CEO who was convicted feared that the contract period for the workers' workplace would not be extended due to his flaws, so he set up a 'figurehead' to take responsibility and staged a fake show," adding, "Just seeing that he is currently performing related duties under the strange pretext of acting CEO clearly reveals his true intentions."

Furthermore, the insider pointed out, "Committing a serious crime and yet not facing proper disciplinary action, continuing to work as the nursing home director and receiving a salary until now, is an act that hurts social welfare workers who work diligently and faithfully."

In response, Mr. B explained, "I have taken full legal responsibility, and there is no legal problem with my current position as the facility director." Attempts to confirm his position again through multiple phone calls were unsuccessful, and through a text message, he stated, "I have nothing more to say."