By Chung Ah-young
The Ministry of Health and Welfare said Friday that it has approved a plan from a Chinese company to establish a for-profit hospital on Jeju Island.
This could lead to the establishment of the first foreign-investor-owned hospital in Korea if Jeju Special Self-Governing Province agrees with the decision.
For-profit hospitals are investor-owned hospital chains that generate profit for their shareholders such as corporate entities. Korea has yet to allow such hospitals.
Based in Shanghai, the Greenland Group plans to invest 77.8 billion won to establish the three-story Greendland International Hospital on 28,163 square meters within the Jeju Healthcare Town in Seogwipo, which has been developed by the Jeju Free International City Development Center.
The group plans to open the hospital in March, 2017. When completed, it will offer medical services in internal medicine, dermatology, cosmetic surgery and family medicine with 134 medical personnel and 47 beds.
"We've decided to approve the plan because there was no problem in the procedure," a ministry official said.
"It will target Chinese tourists on Jeju who are seeking cosmetic surgery and health check-ups. So it will not affect the nation's medical system," he said. "We expect the Greenland hospital to become a test case for foreign for-profit hospitals here," he said.
The government changed the rules to allow for-profit hospitals within free economic zones and on Jeju in October 2012, if foreign capital made up more than half of the total equity investment. The rules also permit local patients to receive treatment at such facilities if they don't use their health insurance coverage.
But since then, the government had not approved the establishment of such hospitals. Last year, the ministry rejected China Stemcell Health Group's plan to set up the Shaner Hospital and Health Care Center on the island, citing financial and management risks.
The government has sought to introduce investor-owned hospitals as part of efforts to boost investment in the health and medical industry and attract more foreign medical tourists.
However, the approval is expected to draw huge backlash from civic groups.
Health rights advocacy groups have opposed the introduction of for-profit hospitals, citing that they will destroy Korea's medical system, hike medical fees and come into conflict with domestic health insurance.
The Ministry of Health and Welfare said Friday that it has approved a plan from a Chinese company to establish a for-profit hospital on Jeju Island.
This could lead to the establishment of the first foreign-investor-owned hospital in Korea if Jeju Special Self-Governing Province agrees with the decision.
For-profit hospitals are investor-owned hospital chains that generate profit for their shareholders such as corporate entities. Korea has yet to allow such hospitals.
Based in Shanghai, the Greenland Group plans to invest 77.8 billion won to establish the three-story Greendland International Hospital on 28,163 square meters within the Jeju Healthcare Town in Seogwipo, which has been developed by the Jeju Free International City Development Center.
The group plans to open the hospital in March, 2017. When completed, it will offer medical services in internal medicine, dermatology, cosmetic surgery and family medicine with 134 medical personnel and 47 beds.
"We've decided to approve the plan because there was no problem in the procedure," a ministry official said.
"It will target Chinese tourists on Jeju who are seeking cosmetic surgery and health check-ups. So it will not affect the nation's medical system," he said. "We expect the Greenland hospital to become a test case for foreign for-profit hospitals here," he said.
The government changed the rules to allow for-profit hospitals within free economic zones and on Jeju in October 2012, if foreign capital made up more than half of the total equity investment. The rules also permit local patients to receive treatment at such facilities if they don't use their health insurance coverage.
But since then, the government had not approved the establishment of such hospitals. Last year, the ministry rejected China Stemcell Health Group's plan to set up the Shaner Hospital and Health Care Center on the island, citing financial and management risks.
The government has sought to introduce investor-owned hospitals as part of efforts to boost investment in the health and medical industry and attract more foreign medical tourists.
However, the approval is expected to draw huge backlash from civic groups.
Health rights advocacy groups have opposed the introduction of for-profit hospitals, citing that they will destroy Korea's medical system, hike medical fees and come into conflict with domestic health insurance.
