South Korean Government Drastically Slashes Funding for Public Hospitals Dedicated to Fighting COVID-19 | Be Korea-savvy

South Korean Government Drastically Slashes Funding for Public Hospitals Dedicated to Fighting COVID-19


“The government has slashed next year's budget for these hospitals by 98.7 percent, citing the end of the COVID-19 pandemic.” (Image courtesy of Yonhap)

“The government has slashed next year’s budget for these hospitals by 98.7 percent, citing the end of the COVID-19 pandemic.” (Image courtesy of Yonhap)

SEOUL, Nov. 24 (Korea Bizwire) – South Korean public hospitals specifically designated for handling infectious diseases during the COVID-19 pandemic continue to grapple with lingering effects. However, their financial woes are escalating as the government has drastically cut the financial support offered to these hospitals.

On Thursday, the Korean Health and Medical Workers Union and the Free Health Care Campaign Center held a press conference in front of the National Assembly. In a statement, the organizations noted that public hospitals suspended a substantial part of their treatment for other patients during the COVID-19 outbreak and prioritized care for COVID-19 patients. “Nevertheless, the government has slashed next year’s budget for these hospitals by 98.7 percent, citing the end of the COVID-19 pandemic,” the organizations claimed.

They emphasized, “A handful of public hospitals, accounting for only 5 percent of the nation’s total medical institutions, covered 81.2 percent of the nation’s sickbeds dedicated to infectious diseases in March 2020 and 92 percent in January 2021. Despite accomplishing the seemingly impossible, these hospitals are now facing a serious crisis due to the government’s irresponsible and unethical behavior.” 

According to the National Assembly Budget Office’s analysis of the 2024 budget, the government has allocated funding of 12.61 billion won for the establishment and operation of the infectious disease response support system next year, marking a 98.7 percent decrease from this year.

The budget to compensate for losses at medical institutions has also been drastically reduced by 98.2 percent, also amounting to only 12.61 billion won.

The Korean Health and Medical Workers Union and the Free Health Care Campaign Center highlighted that for the National Medical Center, the expected losses until 2025 are estimated to surpass aggregate losses recorded in the 15 years from 2005 to 2019. Public hospital workers anticipate that it will take more than four years for the hospitals to recover. 

They stressed that the significant reduction in funding for these hospitals is tantamount to killing public hospitals, and urged the government and the National Assembly to restore COVID-19 funding for public hospitals.

Na Soon-ja, the head of the Korean Health and Medical Workers Union, remarked, “Public hospitals dedicated to treating COVID-19 faced an increased burden as they fulfilled their roles in providing treatment for vulnerable populations and essential regional medical services. In 2019, based on 35 regional medical institutions, public hospitals bore the public interest cost of 124.7 billion won annually. It is crucial to note that these hospitals can fulfill their functions and roles more effectively only when sufficient support is guaranteed.”

M. H. Lee (mhlee@koreabizwire.com)

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