[Breaking] "Authorities Knew of 'Sinan Salt Farm Slave Subsidy Extortion' Three Years Ago"... Negligence Worsened the Damage

Gwangsan District Confirms Vulnerable Groups Resided in Church
Evidence of Embezzlement Found During Livelihood Benefit Review
No Criminal Charges Filed or Assessment of Damage Conducted
Suspicions of Overbilling and Inflated Diagnoses Also Raised

Exterior view of a church in Usandong where Mr. Park serves as pastor. In 2022, Gwangsan District, Gwangju, confirmed that groups of basic livelihood security recipients and persons with impaired decision-making abilities were residing together in the church and ordered their eviction. Photo by Min Chanki

Amid allegations that a nursing hospital in Gwangju extorted subsidies from victims of labor exploitation at salt farms in Sinan, criticism is mounting that the negligence of the relevant authorities has exacerbated the damage. It has been revealed that there are significant loopholes in the overall welfare system, from the protection of vulnerable groups to the management and supervision of medical benefits, leading to a serious drain on taxpayer money and highlighting the urgent need for a comprehensive review.

According to Gwangsan District and the National Health Insurance Service on November 26, a complaint was filed around October 2022 with Gwangsan District, stating that "10 to more than 20 persons with impaired decision-making abilities are residing in an unlicensed church in Usandong."

Gwangsan District confirmed that a large number of people with impaired decision-making abilities, including basic livelihood security recipients, were residing in the facility and determined that this violated the National Basic Living Security Act, leading to the closure of the facility.

The issue is that, despite evidence that livelihood benefits of recipients were being extorted at the church, there was no separation from the perpetrators or any criminal charges filed. Furthermore, similar types of harm have continued to be reported even after more than three years, prompting criticism that the local government’s inaction has pushed vulnerable groups further into blind spots.

At the time, Gwangsan District, during its review of recipients' payments, confirmed that money had been withdrawn several times to the church. However, the district only took corrective action by requiring the money to be returned, without assessing the scale of the damage or filing any reports.

The pastor of the church, identified as Mr. Park, is currently known to be the owner of a nursing hospital building in Ilgok-dong, Buk-gu. It has been found that Park continued to admit persons with impaired decision-making abilities to this nursing hospital and siphoned off their livelihood benefits and health insurance reimbursements.

An official from Gwangsan District stated, "The complaint reported that 10 to more than 20 people were living there, but our investigation found only four persons with impaired decision-making abilities; the rest were church workers or missionaries, so the numbers appear to have been exaggerated. Currently, the person in charge has changed, and only a report remains stating that the district office took all possible actions. It is presumed that no criminal charges were filed in the local community."

Victim A, who temporarily stayed at the facility after suffering labor exploitation at a Sinan salt farm, said, "I don’t remember exactly how many people lived there, but there were at least five. Some were not permanent residents and were frequently transferred to nursing hospitals and other places."

The National Health Insurance Service and Gwangju City, which are responsible for managing and supervising medical benefits, are also expected to face scrutiny. A, who was hospitalized at Park’s nursing hospital for several years, only recently obtained a hospitalization certificate listing seven diagnoses, including dementia, behavioral disorders, and epilepsy. A claims never to have received proper treatment for these conditions.

The medical expenses for medical benefit recipients like A are mostly covered by the local government. Currently, Gwangju City deposits the medical benefit funds with the National Health Insurance Service, which then disburses the payments.

As suspicions grow that excessive medical treatment, such as inflating diagnoses for patients with impaired decision-making abilities, was used to obtain unjust profits, calls are mounting for urgent and thorough management, supervision, and inspection.

Regarding this, a representative from the National Health Insurance Service stated, "The monitoring of fraudulent medical benefit claims by medical institutions is managed by the local government, and the National Health Insurance Service does not conduct separate investigations."