Cha Hospital Group Chairman Cha Kwang-ryul. [Cha Hospital Bio Group]
Cha Hospital Group Chairman Cha Kwang-ryul. [Cha Hospital Bio Group]

Cha Kwang-ryul, chairman of Cha Hospital Group, has lost a lawsuit he filed claiming that news reports about his illegal use of donated cord blood for cosmetic purposes contained false information.

The hospital had acknowledged the allegations and apologized when public criticism was at its height, but filed the lawsuit after the controversy faded from public attention.

The Seoul Western District Court's Civil Division 12, presided over by Judge Kim Jin-young, ruled against Cha on June 19 in his suit against a broadcaster, in which he had sought the deletion of articles he claimed "damaged his reputation by stating false facts." The court found that the reports were not false and that, as a public figure, Cha was subject to coverage on matters of public interest.

Cord blood refers to blood collected from a newborn's umbilical cord after delivery. It is widely regarded as having cosmetic and anti-aging benefits. Cord blood donated for research purposes may be administered for treatment or research under approval from the Korea Disease Control and Prevention Agency.

Cha, the owner of Cha Hospital, along with his wife and father, was found in December 2016 to have received cord blood injections despite not being enrolled as research participants. Cha initially denied the allegations but acknowledged the illegal administration after the Ministry of Health and Welfare announced its investigation findings. In a written apology, he told donors he was "sincerely and deeply sorry."

Despite the fierce public backlash, Cha and his family escaped punishment. Under the medical law in effect at the time, only the medical professionals who administered the illegal injections could be penalized — there was no provision to punish those who received them. Such a provision has since been added. Ultimately, only the cord blood bank director who omitted medical records and the Cha Hospital physicians involved faced disciplinary action, including license suspensions.

Cha filed the lawsuit last August, after the incident had largely faded from public memory, arguing that the reports about him contained false information. During the trial, his legal team contended that he had been cleared of the relevant charges and that the articles should be removed for damaging his reputation through false statements.

The court rejected his arguments, concluding that the reports did not contain false information.

The first-instance ruling stated that "Cha and others received cord blood injections without qualifying as subjects of anti-aging research" and that "such conduct can be assessed as illegal, in violation of the Cord Blood Management and Research Act."

The court further noted that "the fact that Cha was cleared of charges reflected the circumstance that the former Cord Blood Act at the time contained no penal provision" and that "a subsequent amendment introduced a new clause criminalizing the receipt of disqualified cord blood."

The ruling also said the articles addressed "the management of cord blood, a subject of significant public interest," and that Cha, as chairman of a prominent domestic conglomerate, "has considerable grounds to be considered a public figure."

The court concluded that "given that Cha appears to have received the cord blood injections by leveraging his position as chairman of the Cha Group, it is reasonable to view the content of the articles as a matter of public interest."

The ruling has not yet been finalized. Cha filed an appeal on July 12, and a second hearing is scheduled.


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