SNU-affiliated pet health center charging up to W2.7 million sparks controversy - The Korea Times

SNU-affiliated pet health center charging up to W2.7 million sparks controversy

Dogs wait to take commemorative photos at a photo booth during the Pet & More expo at Songdo Convensia, Incheon, Friday. Yonhap

Dogs wait to take commemorative photos at a photo booth during the Pet & More expo at Songdo Convensia, Incheon, Friday. Yonhap

A newly opened animal health screening center branded with the name of Seoul National University (SNU) is facing backlash from the veterinary community over its funding structure and pricing, which critics say violate the spirit of existing veterinary laws.

The SNU Animal Healthcare Center opened on June 16 in Gwangjin District, Seoul. It promotes itself as a nonprofit institution for public and academic purposes, aiming to collect diagnostic data.

However, its establishment was backed by an investment from a for-profit company, raising concerns that it undermines regulations meant to keep animal hospitals out of commercial hands.

The center was established by a nonprofit medical corporation led by SNU veterinary professor Sung Je-kyung.

Funding came from SNU Holdings, the university’s tech holding company, while medical equipment and facilities were provided by SNU Pet, a for-profit hospital management firm also funded by SNU Holdings. SNU Pet holds priority rights to the animal health data collected at the center.

Legal loophole or violation of intent?

The first point of contention is whether the center violates the intent of the Veterinarians Act. Since 2013, revisions to Article 17 have restricted the operation of animal hospitals to licensed veterinarians, government agencies, veterinary schools and nonprofits — explicitly excluding for-profit companies in an effort to prevent the commercialization of veterinary services.

The law was enacted following concerns over the corporate expansion of Irion Animal Hospital, once operated by food company Daehan Flour Mills. The hospital, which marketed itself as a premium provider, expanded to five branches before closing in October 2022 after a 10-year grace period allowed under the revised law.

Now, with the SNU-branded center opening just three years later, veterinary groups worry that the system is being bypassed.

While the center insists it is compliant with current regulations, Sung said the center pays SNU Pet for equipment and space through lease or rental agreements, and that any profits will be reinvested in research.

Still, critics argue that the model is a workaround enabling corporate involvement in veterinary care. “If this model takes hold, we could see a flood of similar centers appearing,” one veterinarian said.

Exterior of the SNU Animal Healthcare Center, which opened in Gwangjin District, Seoul, on June 16 / Captured from the center’s website

Market disruption and local clinic concerns

Another point of dispute is whether the center infringes on local veterinary practices. The center claims it focuses solely on screening, not treatment, and targets preventive care, not illness diagnosis.

Its high-end packages range from 900,000 won to 2.7 million won ($650 to $2,000), intended to differentiate its services from neighborhood clinics.

“We don’t offer treatment, and we don’t even provide screening unless it’s part of a full package, so we don’t compete with small clinics,” Sung said.

However, many frontline veterinarians say the center is already drawing away customers. A launch-week discount promotion fueled additional frustration.

Sung explained that the discounts were offered during the soft opening and halted quickly to avoid misunderstanding.

Some worry the center could absorb demand that would normally be referred from local clinics to secondary hospitals. Others point out that the market for preventive screenings remains unproven, raising questions about the center’s long-term sustainability.

Public purpose or commercial gateway?

The center says its larger goal is to lay the foundation for an animal health care industry that leverages artificial intelligence and diagnostic data.

Asked why this couldn’t be done within the existing SNU Veterinary Hospital, Sung explained that the hospital focuses on severe cases, and limited faculty consensus made such expansion unrealistic.

He stressed that the center’s mission is to build public databases and establish benchmarks, with data made available for research — not for sale.

But critics argue that giving SNU Pet data access contradicts the nonprofit status of the center.

“If this were purely for academic or educational use, we’d have no reason to oppose it,” said Heo Ju-hyeong, president of the Korea Veterinary Medical Association. “But if a commercial entity is involved, there’s always a path to profit. We will closely monitor where the money and data go.”

Some in the industry are now calling for a legal revision rather than continued protests.

“If the current model is technically legal, it’s impossible to dismantle the corporation. Rather than escalating conflict, we need to close the loophole,” said one veterinarian.

Another said, “In the end, it will be up to pet owners to decide whether the center survives.”

This article from the Hankook Ilbo, the sister publication of The Korea Times, is translated by a generative AI and edited by The Korea Times.

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