The National Health Insurance Service (NHIS) said it was seeking to recoup Korean Air and Hanjin Group Chairman Cho Yang-ho’s 100 billion won ($89.4 million) profits from allegedly operating a pharmacy under a borrowed name.
Prosecutors have accused Cho of hiring a pharmacist and running a pharmacy under another person’s name near the Inha University Hospital in Incheon from October 2010 to December 2014. He allegedly raked in 152.2 billion won in reimbursements for long-term care and medical care from the state insurance agency.
The NHIS had said it would reclaim the money depending on the results of the prosecution’s investigation. However, it said on Friday that it has sequestrated Cho’s two houses to retrieve 100 billion won in pharmaceutical reimbursements among the unfairly raised profits. The local autonomous government has the right to recoup the rest 50 billion won in medical payments.
The NHIS also filed a lawsuit against the head of Jungseok Enterprise, a subsidiary of Hanjin Group, and two pharmacists to seek a claim for damages of 15 billion won.
Earlier on Oct. 15, the Seoul Southern District Court indicted Cho without detention for the breach of the Pharmaceutical Affairs Act, embezzlement, and other offenses. The prosecutors also indicted the pharmacist and her husband who worked at the pharmacy for the violation of the Pharmaceutical Affairs Act and fraud.
Cho has denied the allegation, saying he did not operate the pharmacy under another person’s name.
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