"If I had money, why wouldn't I pay?" 10.4 Billion Won Tax Delinquent's Home is a 'Money Throne'

Found 46 Million Won in Cash and Gift Certificates at Home
NHIS "Plan to Recover All Outstanding Payments"

A tax delinquent who illegally pocketed 10.4 billion KRW in health insurance premiums after creating an illegal medical cooperative (의료생협) was caught after two years.

On the 28th, TV Chosun revealed footage from last April showing the Health Insurance Corporation’s on-site collection team raiding an apartment in Dongnae-gu, Busan, where the delinquent, Mr. A, lives.

Mr. A established an illegal medical cooperative in 2005 and operated five medical institutions until 2014, fraudulently obtaining 10.4 billion won.
[Photo by TV Chosun]

Mr. A established an illegal medical cooperative in 2005 and operated five medical institutions until 2014, unlawfully acquiring 10.4 billion KRW. He served three years in prison for fraud and violating medical laws and was released in 2021, but he refused to pay any money, claiming he had none.

After two years of tracking, the Health Insurance Corporation raided an apartment registered under Mr. A’s child’s name. Mr. A refused to open the door, but with police present, the team used a crowbar and electric drill to break the door lock and enter the residence.

As the on-site collection team thoroughly searched the house, Mr. A and his wife followed and obstructed them. Mr. A showed a defiant attitude, saying, "Whenever I see you health insurance people, my blood pressure rises," while his wife said, "If we had money, why wouldn’t we pay? We said we would pay going forward."

However, 46 million KRW in cash and about 50 million KRW worth of gift certificates were found inside the house. The Corporation plans to continue pursuing the remaining 10.3 billion KRW for full recovery.

Serious Health Insurance Premium Leakage Due to Poor Management of Medical Cooperatives

A tax delinquent who illegally created an unauthorized medical cooperative and wrongfully obtained 10.4 billion KRW in health insurance premiums was caught after two years.
[Photo by TV Chosun]

Medical cooperatives are medical institutions established by local residents’ investments, aimed at providing various medical services for the investors.

Since the first medical cooperative was established in Anseong, Gyeonggi Province in 1994, the number of medical cooperatives has steadily increased. According to the Consumer Cooperative Act, a consumer cooperative (생협) can be established if at least 500 members each pay a minimum investment of 50,000 KRW, totaling over 100 million KRW, and a medical institution can be opened under the cooperative’s name.

The purpose of medical cooperatives is for 500 people voluntarily gathered from a specific region or group to engage in consumer cooperative activities based on mutual aid, autonomy, and self-governance. However, contrary to this purpose, medical cooperatives have recently been used as a means of tax evasion.

In particular, some groups led by one or two main organizers obtain the consent of 500 acquaintances, prepare only formal documents, and establish illegal medical cooperatives.

Over the past 12 years, 357 illegally established medical institutions created by such medical cooperatives have been identified, with improper receipts amounting to 555.8 billion KRW. However, actual recovered amounts total only 22.1 billion KRW, less than 4%, highlighting the need for stronger regulations.