Jeju approves first foreigner-only for-profit hospital

Civic groups engage in a sit-in protest in front of the Jeju Provincial Government Office, Wednesday, after the regional administration announced the authorization of the country's first for-profit hospital. / Yonhap

Civic groups fear breakdown of public healthcare system

By Lee Suh-yoon

The country's first for-profit hospital was given authorization to open on Jeju Island, Wednesday, on the condition that it offers services only to foreign patients.

“The Greenland International Hospital has been approved conditionally. It cannot offer treatments for domestic patients,” Governor Won Hee-ryong said in a press conference.

The Greenland International Hospital is focused on catering to wealthy Chinese tourists, and will offer plastic surgery and dermatological services. Internal and family medicine will also be available.

Won also emphasized that Greenland was separate from the country's public health care system; and national health insurance will not be accepted by or be applicable to the hospital.

The 47-bed hospital was constructed in 2017 by Greenland Group ― a state-led Chinese real-estate developer based in Shanghai ― after the pro-free market Park Geun-hye administration gave it the green light to start building in Jeju Healthcare Town on the island's southern coast in 2015. The law allows for such open-investment hospitals for foreign patients in special economic zones such as Jeju if over 50 percent of the capital is financed by foreign investment.

Greenland Group spent 77.8 billion won ($69 million) to build the hospital and has already hired over 100 staff. The possibility of a multi-million lawsuit and ties with China seems to also have affected the governor's decision.

The decision to approve Greenland International Hospital overturns a recent recommendation by the citizens' panel to ban it. It also goes against a recent public poll which showed that almost 60 percent of Jeju Island residents who voted were against allowing the hospital to operate.

The Greenland International Hospital at Seogwipo on Jeju Island. / Courtesy of Jeju Free International City Development Center

Civic groups immediately decried the governor's decision, calling for him to step down at a protest in front of the Jeju Provincial Government Office. The groups fear the authorization of the for-profit hospital will eventually lead to a polarization of medical services and a breakdown of the country's public healthcare system.

“Public hospitals account for less than 5 percent of the total in Korea. So keeping all the private hospitals as non-profit institutions that are tied to the national health insurance system ― which sets the price for key services ― is what has kept medical services affordable in this country,” Jeong Hyung-jun, a member of the Physicians Association for Humanism told The Korea Times.

The introduction of this for-profit hospital that is not kept in check by the National Insurance Act, or laws forbidding illicit advertisements shakes the very foundations of the country's medical system, Jeong said.

“The government is saying it's okay to commercialize medical services, a fundamental public good, and cater to just those who can pay for them,” Jeong added. “If this leads to for-profit hospitals that cater to domestic patients, medical fees are definitely going to skyrocket.”

Governor Won, on the other hand, justified his decision by citing concerns for the local economy.

“Considering how foreign investment on Jeju Island has stalled compared to other cities and provinces, there was a consensus on the need for a swift decision to get rid of uncertainty and regain investors' trust.” Won said in a meeting with local officials two days prior to Wednesday's decision. “Though we must respect the advice of the citizen-led deliberation committee as much as possible, the final decision must take into account the credibility of the administration and the need to create new jobs to prop up the local economy.”