Embezzlement of 2.1 Billion Won in Nursing Home Funds, Including Meal Expenses... Kim Gunhee's Brother Kim Jinwoo Referred to Prosecution

Choi Eunsun, the mother, cleared of charges
No charges for abandonment resulting in death of elderly resident

Kim Jinwoo, the older brother of First Lady Kim Gunhee, has been referred to the prosecution on charges of fraudulent claims for nursing care benefits and embezzlement.

The Criminal Investigation Unit of the Northern Gyeonggi Provincial Police Agency announced on the 26th that Kim, the head of nursing home A, was referred to the prosecution without detention on charges of embezzlement under the Act on the Aggravated Punishment of Specific Economic Crimes, fraud, and violations of the Long-Term Care Insurance Act for the Elderly. A woman in her 50s, B, who was the facility manager and is accused of violating the Welfare of the Aged Act, was also handed over to the prosecution.

Kim Jinwoo, the older brother of Kim Gunhee who is implicated in the preferential treatment allegations in the development of the Gongheung District in Yangpyeong, appeared at the pretrial detention hearing held at the Seoul Central District Court in Seocho-gu, Seoul on November 19 last year. Photo by Yonhap News

Kim is accused of fraudulently claiming approximately 1.44 billion won in long-term care benefits by inflating staff working hours. The alleged offenses took place from August 2018 to February last year. According to an investigation by the National Health Insurance Service, it was found that Kim illicitly obtained 665 million won over three years after March 2022, and 775 million won over the previous three and a half years.

During the analysis of accounting records, the police also found evidence that Kim had diverted 700 million won from meal expenses and retained earnings, adding an additional charge of embezzlement. Facility manager B was charged with abuse for restraining some residents for longer than the legally permitted time.

Choi Eunsun, the mother of First Lady Kim, who was also accused, was cleared of charges. Authorities determined that, at the time of the investigation, she had already transferred both the management rights of the nursing home and the responsibility for resident care.

The charge of abandonment resulting in death was also not recognized. Regarding the allegation that an octogenarian resident showing signs of diarrhea was neglected and died, police concluded there was no crime, noting that the nursing home contacted the family to arrange hospital treatment and that the resident died a month after being transferred to the hospital.

Previously, the police had requested an arrest warrant for Kim, but the court dismissed it, stating that the risk of evidence destruction or flight was low.