Case Type: Criminal

Result: No charges (case closed without indictment at the police stage)

Case Summary:

The Criminal Defense Team of Suhn Law Group (Lead Attorney: Taeho Song) successfully represented a client accused of violating the “one pharmacist–one pharmacy” rule under the Pharmaceutical Affairs Act and committing fraud involving approximately ₩3.2 billion in alleged improper claims of health insurance and medical aid. The client was also investigated for alleged violations of the Subsidy Management Act.

Investigative authorities initially suspected that the client had conspired with another pharmacist to operate two pharmacies under a borrowed name, a structure commonly referred to as a “nominee pharmacy.” If established, such an arrangement could have constituted not only a violation of the Pharmaceutical Affairs Act but also large-scale fraud related to improper reimbursement claims.

In response, the defense team went beyond a simple denial and conducted a comprehensive legal and factual analysis, including the legislative intent of the Pharmaceutical Affairs Act and relevant case law. The team demonstrated that the nominal owner pharmacist had been actively involved in the overall management of the pharmacy, including interior contracts, staff payroll, equipment purchases, and lease agreements, thereby exercising genuine operational control.

Furthermore, the financial transactions between the pharmacists were clarified as legitimate financial arrangements rather than transfers of operational control. The defense also established that no unlicensed third party had been involved in the operation of the pharmacy, undermining the basis for a violation of the Pharmaceutical Affairs Act.

After reviewing the submitted evidence and legal arguments, the police concluded that there was insufficient evidence to establish illegality in the establishment and operation of the pharmacies or to support claims of fraudulent reimbursement. Accordingly, the case was closed with a decision of no charges at the police stage.

Case Contact: Attorney Tae ho Song