NAMYANGJU, South Korea—A nursing home in Namyangju, Gyeonggi Province, operated by the family of Kim Keon-hee, the wife of former President Yoon Suk-yeol, has been handed a significant 104-day business suspension after an extensive investigation confirmed the fraudulent claiming of over 1.44 billion Korean Won (approximately $1.06 million USD) in long-term care benefits. The administrative action, imposed by Namyangju City, marks a severe penalty stemming from allegations that include not only financial impropriety but also serious accusations of elder abuse and negligent homicide, which are currently the subject of an ongoing police probe.
The Scale of the Fraudulent Claims
The facility, identified as 'A Nursing Home,' is operated by Kim's mother, Choi Eun-soon, and her brother, Jin-woo. The penalty follows an investigation by the National Health Insurance Service (NHIS), which concluded that the nursing home had systematically manipulated records to overstate staffing levels and work hours.
According to a statement released by Namyangju City on September 29, the facility was found to have fraudulently claimed a total of 1.44 billion KRW. This figure is derived from two distinct periods: approximately 665 million KRW overbilled between March 2022 and February 2025, and an additional 775 million KRW claimed illicitly between August 2018 and February 2022.
During the most recently investigated period (March 2022 to February 2025), the fraudulently claimed amount accounted for 12.9% of the total 5.15 billion KRW in long-term care benefits paid to the facility. The key method involved inflating the reported working hours of employees, a scheme specifically designed to maximize government reimbursements that are tied directly to staffing ratios and service provision.
Namyangju City determined that the facility’s actions violated Article 37, Section 1, Clause 4 of the Long-Term Care Insurance Act for the Elderly, which prohibits claiming benefits through "false or other fraudulent means." As a result, the 104-day business suspension was implemented in mid-September.
The financial repercussions for the facility will be significant and immediate. The fraudulently claimed benefits will be directly recouped by the NHIS. Furthermore, given that the fraudulent amount exceeds 10% of the total benefits paid, the case automatically qualifies for a criminal indictment, separate from the administrative suspension.
Elder Abuse and Negligent Homicide Allegations
The facility’s troubles extend far beyond financial misconduct. 'A Nursing Home' is simultaneously under investigation by the Gyeonggi Bukbu Provincial Police Agency for disturbing allegations of elder abuse and, more gravely, negligent homicide.
The police probe was initiated following a public interest complaint filed with the NHIS in April, which prompted a joint on-site inspection involving local authorities, the police, and a specialized elder protection agency. The inspection’s findings painted a grim picture of care standards.
Investigators uncovered evidence suggesting that certain elderly residents were allegedly subjected to prolonged physical restraint. Furthermore, during basic care procedures such as diaper changes, there were instances where privacy was not maintained, with staff reportedly failing to use screens or ensure seclusion. These findings have led to concerns that the facility may have systematically neglected the dignity and safety of its vulnerable residents.
In a separate, but equally serious development, Chung Choon-saeng, a member of the National Assembly representing the minor opposition Rebuilding Korea Party, filed a formal criminal complaint against the facility. The complaint alleges negligent homicide and a violation of the Elder Welfare Law. It centers on the case of an 80-year-old resident who reportedly suffered from persistent diarrhea for over three weeks but was only belatedly transferred to the hospital, where they subsequently died. This incident raises profound questions about the facility’s response to urgent medical needs and adherence to professional care standards.
Adding to the list of deficiencies, the facility’s outsourced catering service was also cited for hygiene violations, receiving fines between 200,000 and 500,000 KRW for issues that included cooks not wearing masks and the discovery of foreign substances in cooking utensils.
Police Investigation Underway
Police officials confirmed that they are actively investigating both the financial fraud, based on the NHIS’s findings, and the criminal allegations filed by the lawmaker.
"We have already questioned Ms. Kim’s mother and brother as suspects regarding the relevant charges," a police official stated. "Based on the collected evidence and our ongoing investigation, we plan to summon them again for additional questioning soon."
The administrative process requires the nursing home to ensure the safe relocation of all its current residents to alternative facilities. Namyangju City expects this resident transfer process to be completed by the end of the following month, at which point the 104-day business suspension will officially commence.
The confluence of severe administrative penalties, a major financial fraud case, and criminal investigations into elder abuse and negligent homicide place the operators, who are closely related to the former presidential couple, under intense public and legal scrutiny. The case underscores mounting concerns over governance and ethical standards within South Korea's long-term care sector, particularly when connected to high-profile political families.
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