According to Yonhap News,

(SEOUL = Yonhap News) In its three-year economic innovation plan, which was publicly announced on February 25, the Korean government included a plan to ease regulations on the establishment of for-profit hospitals in free economic zones (FEZs).

Currently, foreign investors are allowed to run a for-profit hospital only in Jeju Province and FEZs under a number of restrictions.

To establish a foreign-invested hospital in an FEZ, the director of the hospital and more than 10 percent of its doctors must be foreigners. However, the government does not apply such restrictions to Jeju Province.

Therefore, the government is expected to ease regulations on foreign-invested hospitals in FEZs to the level of Jeju Province, and decrease the required ratio of foreign investment by 50 percent.

Under the current system, the number of sickbeds for foreign patients must not exceed five percent of the total sickbeds at local hospitals in FEZs, and the government is expected to consider increasing the rate to 10 percent.

Also, a set of comprehensive support measures, including guidelines, will be introduced to encourage domestic medical institutes to expand their businesses into overseas markets.

However, some say it is still premature to judge the government’s efforts to attract foreign-invested hospitals and help local hospitals extend their businesses abroad.

Although it has been more than 10 years since the government allowed the establishment of for-profit hospitals in free economic zones, no investors have shown interest in establishing a hospital in Korea.

Chinese medical company China Stem Cell Health Group applied to establish a hospital in Jeju Province, but the application was put on hold by the Ministry of Health & Welfare.

It has also been pointed out that increasing the number of sickbeds for foreign patients is pointless, as the proportion of foreign patients in local hospitals is also substantially below five percent.

“It is too early to say that the government will lift restrictions, as there are no for-profit hospitals in Korea yet,” said Moon. “The president was talking about the government’s policy direction, not specific changes in policies.”

“The ministry suggested that the government ease regulations once the hospitals are established in Korea instead of changing regulations in advance,” said Moon.