State paid Choi Seo-won's W39.27m hospital bill — now it wants the money back

Corrections authorities paid 39.27 million won ($29,200) in hospital bills on behalf of Choi Seo-won, a central figure in South Korea's state affairs manipulation scandal, after she fell inside a detention center — but have been unable to recover the money for more than five years. A first-instance ruling in the government's reimbursement lawsuit against Choi is due Oct. 15.

According to documents the Ministry of Justice submitted to the office of Democratic Party of Korea lawmaker Kim Yong-min on Thursday, the Seoul Eastern Detention Center paid 39.27 million won in outside medical expenses on Choi's behalf on Oct. 23, 2020.

Choi had been held at the Seoul Eastern Detention Center since July 2019, when she slipped and fell in a bathroom. She subsequently underwent shoulder surgery at Kangdong Sacred Heart Hospital between May and July 2020.

When Choi declined to pay the hospitalization costs, citing financial hardship, the detention center covered the bill. Five days later, on Oct. 28, 2020, the center notified Choi of her obligation to pay — but no follow-up action was taken for roughly five years.

Corrections authorities rediscovered the unpaid bill last November and directed the Seoul Eastern Detention Center to file a reimbursement lawsuit. The center sued Choi on Nov. 25 of that year.

The central legal question is whether the government's right to seek repayment has already expired under the statute of limitations.

Under the National Finance Act, the government's monetary claims lapse if not exercised within five years. However, the statute of limitations can be interrupted if the government issues a formal payment notice.

Choi's side argues the lawsuit was filed more than five years after the government paid the bill on Oct. 23, 2020, meaning the limitations period has already run. Her legal team contends the clock should start from the date of payment.

The government, by contrast, argues that the payment demand notice Choi received on Oct. 28, 2020 constitutes a formal payment notice under the National Finance Act. Under that reading, the five-year clock began on Nov. 28, 2020 — the day after the 30-day payment deadline expired.

Under the government's calculation, the statute of limitations had not yet expired when the Seoul Eastern Detention Center filed suit last Nov. 25 — just three days before the government's own claimed deadline.

A second dispute concerns who should bear the medical costs in the first place.

Choi's side argues she never indicated a willingness to pay for her own treatment, and that the government is obligated under inmate medical care guidelines to provide detainees with appropriate medical care at state expense.

The government counters that not all medical costs incurred during detention are automatically the state's responsibility, and says it has confirmed that Choi did in fact express a willingness to pay for her own treatment.

Seoul Central District Court Judge Kim Do-yo is set to deliver the first-instance ruling in the government's reimbursement suit against Choi at 2 p.m. on Oct. 15. The outcome is expected to hinge on when the court determines the statute of limitations began to run and whether it accepts that Choi intended to pay for her own treatment.