An appellate court has overturned the conviction of the mother-in-law of People Power Party(PPP) presidential candidate Yoon Suk Yeol, finding her not guilty of illegally receiving health insurance benefits.

The Seoul High Court on Tuesday threw out the three-year sentence Choi Eun-soon received in her first trial and ruled her innocent.  

The 76-year-old was indicted in late 2020 on charges of fraud and violating the Medical Service Act. She was accused of collecting insurance benefits of nearly two-point-three billion won by illegally opening a convalescence hospital even though she was not a medical professional.

Choi claimed her innocence, saying she was not involved in the hospital's operation but only lent money to set up a medical foundation which she received back. She also served as joint board chair of the foundation.

Last July, a lower court found her guilty and handed down the three-year prison sentence sought by prosecutors. She was immediately taken into custody.

She appealed the verdict and has been on trial without detention after being released on bail in September.