Joint specialty hospital suspected of stem cell treatment fraud... Seoul Metropolitan Government investigation begins

The Seoul Metropolitan Police Agency has launched an investigation into a joint specialty hospital located in Seocho-gu, Seoul.

According to reports from Yonhap News on the 10th, the Financial Crimes Investigation Unit of the Metropolitan Investigation Division of the Seoul Metropolitan Police Agency is scheduled to conduct an investigation at 10 a.m. on the same day as the accuser regarding the alleged violation (fraud) of the Act on Aggravated Punishment of Specific Economic Crimes by Mr. A, the director of this hospital.

Previously, the victim's legal representative, Attorney Je-il Lee of the People's Livelihood Economic Research Institute, filed a complaint with the Seoul Metropolitan Police Agency, claiming that the director of hospital A provided stem cell treatment services to patients through company B, a stem cell storage company that did not have permission to export and process stem cells.

According to the complaint, the director of hospital A advertised to patients visiting the hospital by saying, "If you pay 3 million won, we will extract stem cells and store them at company B, and then bring them back and give you an injection right away when you need treatment."

Attorney Lee argued that even though company B had permission to store stem cells only for research purposes and could not export the stem cells for patient treatment, the director of hospital A ignored this and provided treatment services.

Initially, the case was assigned to the Bangbae Police Station, which had been investigating cases of surrogate surgery and false advertising complaints related to this hospital, but it was reported that it was transferred to the Seoul Metropolitan Government right after the National Assembly inspection last month as it was pointed out that the investigation was slow.

Attorney Lee, who is being investigated by the accuser on this day, told Yonhap News, "It is estimated that the number of victims can reach up to 15,000," and "We will request a compulsory investigation, including a search and seizure of the (patient) list, etc."