For-profit hospital

[Anchor Lead]

The first for-profit hospital in Korea is to be open soon on Jejudo Island. Run on Chinese investment, the hospital will only provide health care services to foreign patients. The decision to open a for-profit hospital has sparked sharp criticism.

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The government of Jeju Special Self-governing Province has granted a permit for the first in the nation for-profit hospital. The hospital will be allowed to treat only foreign patients. Based in Health Care Town in Seogwipo, the hospital will be run on a 77.8 billion won investment from the Chinese real-estate developer Greenland Group. Jeju Special Self-governing Province Governor Won Hee-ryong has apologized for rejecting the island residents' opposition and said that it was an inevitable decision.

[Soundbite] Won Hee-ryong (Governor, Jeju Special Self-governing Prov.) : "Trust in investment as well as the Korea-China FTA and investor-state disputes could become an issue."

The hospital will have 47 wards, and will provide services in four areas including plastic surgery and dermatology. The governor added that the opening of the hospital will not impact public healthcare, because if the hospital decides to provide health care services to domestic patients, its license will be revoked.

[Soundbite] Won Hee-ryong (Governor, Jeju Special Self-governing Prov.) : "The regulations regarding the hospital will stipulate clearly that it can only treat foreigners in line with the Health Ministry's regulations and general law. We will also make sure to supervise this aspect."

However, civic groups blasted the move by saying that it will only widen the gap in the quality of health care services and increase medical costs. Controversy over the first for-profit hospital in the nation will likely continue to brew for the time being.