'Confirmed Sentence of 15 Years for NHIS Team Leader After Embezzling ₩4.6 Billion and Investing in Crypto Futures'

A heavy sentence has been confirmed for the financial management team leader accused of embezzling over ₩4.6 billion from the National Health Insurance Service (NHIS).

According to sources in the industry on the 15th, the Supreme Court dismissed the appeals filed both by Choi (47), who was prosecuted for violation of the Act on the Aggravated Punishment of Specific Economic Crimes (embezzlement), and by the prosecution, and upheld the lower court’s ruling of 15 years in prison.

Choi reportedly embezzled a total of over ₩4.6 billion on 18 occasions from April to September 2022 by manipulating the internal computer system of the NHIS.

After committing the crime, Choi fled to the Philippines, but was arrested by police at a luxury resort in Manila on January 9 last year.

Investigation revealed that, apart from ₩720 million recovered by the NHIS through civil lawsuits for account seizure and claim collection, most of the remaining ₩3.9 billion was lost in virtual asset (cryptocurrency) futures investments.

In both the first and second trials, the court stated, "Even though integrity equivalent to that required of public servants is expected, the defendant embezzled a large sum in a planned manner; the gravity and method of the crime are very serious," and sentenced Choi to 15 years in prison.

However, the court found that Choi’s act of purchasing coins at a domestic virtual asset exchange with about ₩3.5 billion from the embezzled funds and transferring them to electronic wallets on overseas exchanges did not constitute a violation of laws regarding the concealment of criminal proceeds. The court also rejected the prosecution's request to collect ₩3.9 billion from Choi.

Despite the prosecution and Choi both appealing the appellate court’s ruling, the Supreme Court found no reason to change the decision and dismissed the appeals.