Lawmakers of the main opposition Democratic Party debate the problems in the recent government licensing of television channels in a National Assembly hall Wednesday. (Park Hyun-goo / The Korea Herald)
“The Eulji hospital articles of association have no mention of broadcast business at all. If the hospital had added the business to its articles, it should have first applied for a change in the articles, which it did not,” an official of the office told The Herald Business.
It is the majority opinion among the legal community that participation by the Eulji hospital in the broadcast project, which must be a for-profit business, amounts to the violation of the medical law on the level of its foundation. Under article 20 of enforcement ordinance of the law, a medical corporation or foundation is banned from pursuing profit-making businesses. It is allowed to participate in a limited range of incidental businesses such as staff education and research, a welfare center for the aged, a funeral hall and a parking lot.
Yonhap News Agency, which leads the consortium to launch the all-news cable channel, released counter reports Tuesday. The hospital’s equity participation in the consortium does not violate any current law, the news agency reported, quoting from the Ministry of Health and Welfare.
“Medical foundations are not allowed to pursue profits. But the ban simply relates to purely medical businesses. There is no legal restriction on a medical foundation’s profit pursuit in the process of foundation management. In conclusion, the equity investment (by Eulji hospital in Yonhap) poses no legal problems at all,” Yonhap quoted ministry official Lee Dong-woo, as saying.
However, critics see Lee’s remark as a contradictory and arbitrary interpretation of the law. In the real world, the current law is applied to hospitals regarding profit pursuit so strictly as to cause complaints that their for-profit activities are restricted too severely. In addition, the incidental businesses specified in the articles of association of a hospital should be limited all the way to those specified in the medical law.
“What the Yonhap report said is no different from an assertion that all hospitals are allowed to pursue for-profit businesses completely. I have never heard of such view,” a hospital consultant said on condition of anonymity.
“If so, why have hospitals demanded consistently for years that the government allow them to turn into for-profit corporations?”
By Chun Sung-woo (swchun@heraldcorp.com)
MOST POPULAR