Article 1(Purpose) #
The purpose of this Decree is to prescribe matters mandated by the Act on the Establishment and Management of Local Medical Centers and other matters necessary for the enforcement thereof.
Article 2(Registration of incorporation) #
The matters to be registered for the establishment of a local medical center under Article 4 (2) of the Act on the Establishment and Management of Local Medical Centers (hereinafter referred to as the "Act") shall be as follows: <Amended on Jan. 28, 2014>
1. Purpose;
2. Name;
3. Location of the main office;
4. Capital;
5. Names and addresses of executive officers;
6. Methods of public announcement.
Article 2-2(Examination of feasibility of establishment of local medical centers) #
(1) In cases falling under any of the subparagraphs of Article 4 (4) of the Act (hereinafter referred to as "establishment, dissolution, etc. of a local medical center"), a local government shall conduct a preliminary investigation into the following matters; in such cases, detailed investigation procedures and standards for each item shall be determined by the Minister of Health and Welfare:
1. Distribution of population, and the current status of use and supply of medical services, of the relevant local government;
2. Necessity and appropriateness of medical services for local residents;
3. Results of collecting opinions of local residents on the establishment, dissolution, etc. of a local medical center;
4. Effects of establishment, dissolution, etc. of a local medical center on the regional economy and finance;
5. Budget required for the establishment, dissolution, etc. of a local medical center, the method of raising financial resources, and the appropriateness thereof.
(2) In order to conduct an investigation under paragraph (1), a local government shall request a corporation, institution, or organization designated by the head of the local government from among the following corporations, institutions, or organizations to conduct an investigation:
1. A corporation or organization established for the purpose of providing technical assistance and consulting necessary for the establishment and operation of a hospital, etc.;
2. A support center for public health and medical services under Article 21 of the Public Health and Medical Services Act and a task force to support public health and medical services under Article 22 of that Act;
3. An accounting firm under Article 23 of the Certified Public Accountant Act;
4. A university or college under subparagraph 1 of Article 2 of the Higher Education Act;
5. A research institute under Article 8 of the Act on the Establishment, Operation and Fostering of Government-Funded Research Institutes;
6. A specialized institution for research and development projects under Article 7 of the Health and Medical Service Technology Promotion Act.
(3) In cases of the establishment, dissolution, etc. of a local medical center, a local government shall examine the impact on the promotion of health of local residents, the impact on regional healthcare and medical services, the feasibility of business, etc. based on the results of investigations conducted under paragraph (1).
(4) If a local government conducts an examination under paragraph (3), it shall organize a deliberative committee on the establishment, dissolution, etc. of a local medical center (hereinafter referred to as "Deliberative Committee") and have it deliberate thereon.
(5) The Deliberative Committee shall be comprised of not less than 8 but not more than 10 members, including 1 chairperson, and civilian members shall account for at least 1/2 of the members.
(6) The members of the Deliberative Committee shall be appointed or commissioned by the head of a local government from among any of the following persons, and the chairperson shall be elected from among civilian members:
1. Persons recommended by the local council;
2. Public officials in charge of affairs related to a local medical center in the local government;
3. Other persons who have extensive knowledge of and experience in the establishment and operation of hospitals.
(7) The chairperson of the Deliberative Committee shall represent the Deliberative Committee and have general supervision and control of its business affairs.
(8) If the chairperson of the Deliberative Committee is unable to perform his or her duties due to any unavoidable cause, a member designated in advance by the chairperson shall act on behalf of the chairperson.
(9) A majority of the members of the Deliberative Committee shall constitute a quorum, and any resolution thereof shall require the concurring vote of a majority of those present.
(10) Except as provided in paragraphs (3) through (9), matters necessary for the composition, operation, etc. of the Deliberative Committee shall be prescribed by ordinance of the relevant local government.
[This Article Added on Jan. 28, 2014]
Article 3(Registration of establishment of branches) #
Upon establishing a branch, a local medical center shall file for registration of the name, location, and date of establishment of the branch at the seat of its principal office within 3 weeks after establishment; provided, if a branch is established simultaneously with the establishment of a local medical center, the registration of establishment of the branch office may be filed concurrently with the registration of establishment of the local medical center.
[This Article Wholly Amended on Jan. 21, 2025]
Article 4(Registration of relocation) #
(1) If a local medical center relocates its main office, it shall file for registration of the new location and the date of relocation at the previous location or new location within 3 weeks from the date of relocation.
(2) If a local medical center relocates a branch, it shall register the new location and the date of relocation at the location of its main office within 3 weeks from the date of relocation.
[This Article Wholly Amended on Jan. 21, 2025]
Article 5(Registration of changes) #
If any matter registered under any subparagraph of Article 2 or Article 3 is changed (excluding cases falling under the registration of relocation under Article 4), a local medical center shall register such change at the seat of its main office within 3 weeks after such change.
[This Article Wholly Amended on Jan. 21, 2025]
Article 6(Application for registration) #
(1) The registration under Article 2 through 5 shall be made by the president of a local medical center.
(2) When the president of a local medical center applies for registration pursuant to paragraph (1), he or she shall attach the following documents to the application for registration:
1. The articles of incorporation and documents evidencing the qualifications of executive officers, in the case of registering establishment under Article 2;
2. Documents evidencing the establishment of a branch in the case of registering the establishment of a branch under Article 3;
3. Documents evidencing the relocation of the main office or branch office in the case of registering relocation under Article 4;
4. Documents evidencing the changed matters in the case of registering changes under Article 5.
Article 7(Computation of registration period) #
When any matter to be registered under this Decree requires authorization or approval from an authorizing agency, the registration period shall be computed from the date on which the written authorization or approval is delivered.
Article 8(Article of incorporation) #
(1) "Matters prescribed by Presidential Decree" in Article 6 (1) 12 of the Act means the following matters: <Amended on Jul. 24, 2015>
1. Management of retirement benefits;
2. Borrowing of funds;
3. The fixed number of personnel.
Article 9(Executive officer Recommendation Committee) #
(1) The executive officer recommendation committee under Article 8 (2) of the Act (hereinafter referred to as the "Recommendation Committee") shall be established in a local government having jurisdiction over the local medical center, and shall be comprised of the following persons; provided, the Recommendation Committee for the first establishment of a local medical center shall be comprised of 4 persons recommended by the head of the relevant local government and 3 persons recommended by the relevant local council: <Amended on Jul. 24, 2015>
1. Four persons recommended by the board of directors of the relevant local medical center;
2. Two persons recommended by the head of the relevant local government;
3. One person recommended by the relevant local council.
(2) No executive officer (excluding non-standing executive officers) or employee of a local medical center, or public official of the relevant local government (including local council members) may become a member of the Recommendation Committee.
(3) The chairperson of the Recommendation Committee shall be appointed by the head of a local government from among the members of the Recommendation Committee, and the chairperson of the Recommendation Committee shall represent the Recommendation Committee and preside over its meetings.
(4) Deleted. <Jul. 24, 2015>
(5) Deleted. <Jul. 24, 2015>
(6) The Recommendation Committee shall continue to exist until the president and directors of a local medical center are appointed.
Article 10(Duties and remuneration of persons holding concurrent offices) #
(1) A person who concurrently conducts business affairs of a local medical center pursuant to Article 13 (1) of the Act shall comply with the articles of incorporation of the local medical center and various regulations of the local medical center, and shall faithfully conduct research or medical treatment of the local medical center. <Amended on Jul. 2, 2019>
(2) A local medical center may bear all or some of the remuneration of a person holding concurrent office and other expenses incurred in holding concurrent office.
Article 11(Business plans) #
(1) A business plan under Article 16 (1) and (2) of the Act shall separately indicate the objectives, policies, main contents of the business, and necessary budget details in the business plan. <Amended on Jul. 24, 2015>
(2) "Important matters prescribed by Presidential Decree" in Article 16 (2) of the Act means the following: <Added on Jul. 24, 2015>
1. Establishment or discontinuation of business;
2. A change in the budget exceeding 10 percent of the total budget of the local medical center.
[Title Amended on Jul. 24, 2015]
Article 11-2(Prior consultation on closure of local medical centers) #
(1) If the head of a local government intends to consult with the Minister of Health and Welfare pursuant to the former part of Article 20-2 (1) of the Act, he or she shall request consultation with the Minister of Health and Welfare no later than 50 days before the date on which a board of directors meeting for deliberation and resolution on the closure or dissolution of a local medical center is to be held. <Amended on Jul. 24, 2015>
(2) If the head of a local government requests consultation under paragraph (1), he or she shall make a written request for consultation, and the consultation documents shall be accompanied by the following documents: <Amended on Jul. 24, 2015>
1. Grounds for closure or dissolution of business;
2. Results of deliberation by the Deliberative Committee;
3. Measures for public health and medical services of the local government following business closure or dissolution of a local medical center;
4. Plan for measures under Article 20-2 (3).
(3) Upon receipt of a request for consultation under paragraph (1), the Minister of Health and Welfare shall reply with his or her opinions on the closure or dissolution of business within 30 days. <Amended on Jul. 24, 2015>
[This Article Added on Jan. 28, 2014]
[Title Amended on Jul. 24, 2015]
Article 12(Operational evaluation) #
(1) An operational evaluation of a local medical center under Article 21 (1) of the Act shall be conducted every year.
(2) If deemed necessary, the Minister of Health and Welfare may designate any of the following institutions as an institution evaluating operations and have the institution evaluate operations under the main clause of Article 21 (1) of the Act: <Amended on Feb. 29, 2008; Mar. 15, 2010>
1. A corporation or organization established for the purpose of evaluating hospitals;
2. An accounting firm under the Certified Public Accountants Act;
3. Other corporations or organizations that meet the standards prescribed by Decree of the Ministry of Health and Welfare.
Article 13 #
Deleted. <Oct. 20, 2008>
Article 14(Documents to be submitted) #
"Documents prescribed by Presidential Decree" in Article 21 (3) of the Act means the following documents: <Amended on Oct. 4, 2007; Jul. 24, 2015; Dec. 16, 2021>
1. An accounting audit report;
2. A business operation plan and a business performance report;
3. Details of the audit report by the auditor and the details of a request for disciplinary action, correction, or improvement or recommendation, etc., if any, under Articles 32, 33, 34, and 34-2 of the Board of Audit and Inspection Act;
4. The results of an audit conducted by a local government and the details of a request for correction under Article 50 (2) of the Local Autonomy Act, if any.
Article 15(Commencement of operational diagnosis) #
The operational diagnosis under Article 22 (1) of the Act shall be commenced within 60 days from the date on which an operational evaluation is completed or the analysis of documents is completed.
Article 16(Dispatch of public officials) #
(1) In any of the following cases, the head of a local government shall dispatch public officials under his or her control to a local medical center to support business performed by the local medical center pursuant to Article 25 of the Act:
1. Where a local medical center is not operated normally due to a natural disaster, calamity, etc.;
2. Where it is necessary to improve the operation of a local medical center based on an operational diagnosis under Article 22 (1) of the Act.
(2) A local medical center may pay business allowances to public officials dispatched to a local medical center pursuant to paragraph (1) in accordance with the payment standards determined by the local medical center.
Article 17(Scope of employees deemed public officials) #
"Employees prescribed by Presidential Decree" in Article 28 of the Act means employees in charge of accounting, construction works, purchase of goods, or audit at a local medical center.
Article 17-2(Processing of personally identifiable information) #
The head of a local government or the president of a local medical center may process data containing resident registration numbers under subparagraph 1 of Article 19 of the Enforcement Decree of the Personal Information Protection Act, if inevitable for conducting business affairs concerning the verification of grounds for disqualification under Article 11 (1) of the Act.
[This Article Added on Jul. 24, 2015]
Article 18(Imposition of administrative fines) #
The criteria for imposing administrative fines under the proviso of Article 29 (2) of the Act shall be as specified in the Appendix.
[This Article Wholly Amended on Jul. 24, 2015]