Medical facilities that closed without paying penalties have left nearly 20 billion won ($14 million) in unpaid fines over the past five years, government data shows.
According to the Ministry of Health and Welfare on the 18th, total overdue penalties imposed on defunct medical institutions from January 2021 through November 30, 2025 reached 77.75 billion won.
After excluding amounts not yet due or under installment plans (49.0%), cases under stay of execution due to administrative litigation (21.5%), and amounts tied to rehabilitation or bankruptcy proceedings (4.1%), actual unpaid penalties stand at 19.77 billion won (25.4%).
The number of medical facilities closing without paying penalties has also risen. Only two closed in 2021 and one in 2022, but the figure climbed to six in 2023, seven in 2024, and 12 through November 2025.
These institutions received penalties in lieu of business suspension orders but shut down without payment. Critics point to a pattern of "sanction evasion," where operators close facilities after receiving penalty notices and reopen under different formats.
The ministry currently manages unpaid penalties through compulsory collection procedures including payment demands and asset seizures. However, officials acknowledge limitations: collection can take considerable time when defunct facilities lack sufficient assets or face prolonged legal disputes.