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Nursing home run by ex-president's in-laws illegally claimed $1 billion in gov't benefits, probe finds

Published: 24 Jun. 2025, 10:42

Former first lady Kim Keon Hee walks into Acrovista, the apartment complex to which she and former President Yoon Suk Yeol moved to following Yoon's impeachment, on April 11. [JOINT PRESS CORPS]

A nursing home operated by the brother-in-law of former President Yoon Suk Yeol was found to have fraudulently claimed 1.44 billion won ($1.05 million) in long-term care benefits, prompting the National Health Insurance Service (NHIS) to initiate a confiscation process.

The NHIS sent a notice of planned confiscation to a nursing home located in Hwado-eup in Namyangju, Gyeonggi, operated by Kim Jin-woo — the brother of former first lady Kim Keon Hee — according to Rep. Jeon Jin-sook of the Democratic Party, a member of the National Assembly’s Health and Welfare Committee, on Monday.

From April 28 to May 1, the NHIS conducted a joint on-site investigation with the Namyangju City Government, Namyangju Nambu Police Precinct and the Northern Gyeonggi Elder Protection Agency. The investigation spanned a 36-month period from March 2022 to February 2025.

The investigation found that the nursing home had violated staffing standards and additional staffing criteria. For instance, a staff member responsible for laundry failed to meet the required monthly working hours, but the nursing home still claimed 409.38 million won in long-term care benefits without any deductions.

Additionally, the worker was found to be operating a staff shuttle vehicle instead of performing laundry duties, and the manager, during that time, performed both laundry and facility maintenance tasks — meaning neither staff member had met their designated work hours. Despite this, the nursing home claimed and received an additional 255.86 million won in supplemental staffing compensation.

The total long-term care benefits paid to the nursing home during the investigation period amounted to 5.16 billion won.

Former President Yoon Suk Yeol appears at the Seoul Central District Court in Seocho District, southern Seoul on June 23. [JOINT PRESS CORPS]

Of this, 665.24 million won — or 12.89 percent — was found to have been fraudulently claimed. The NHIS stated that cases involving over 10 percent in fraudulent claims are subject to criminal referral and is currently reviewing whether to proceed with such action.

An additional 774.88 million won was found to have been fraudulently claimed using similar methods outside the main investigation period, from August 2018 to February 2022. This brings the total amount that was improperly claimed by the nursing home to 1.44 billion won.

The NHIS sent a notice of planned confiscation to the nursing home on May 22. It plans to issue a formal confiscation notice on July 7 after reviewing the facility’s submitted statement.

Separately, the nursing home has also been reported to the police for suspected elder abuse. Allegations include providing poor-quality meals and delaying hospital transfer for a resident in their 80s who later died after experiencing symptoms of diarrhea and rectal bleeding.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.
BY HAN YOUNG-HYE [[email protected]]