Closed Hospitals Dodge $14M in Fines Over Five Years

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By Park Ji-su
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Unpaid fines lead to hospital closures... 20 billion won uncollected over 5 years - Seoul Economic Daily Culture News from South Korea
Unpaid fines lead to hospital closures... 20 billion won uncollected over 5 years

The amount of unpaid fines from medical institutions that shut down without paying penalties has approached 20 billion won ($14 million) over the past five years, government data showed.

According to the Ministry of Health and Welfare on Sunday, overdue fines imposed on medical facilities that closed between January 2021 and November 30, 2025 totaled 77.7 billion won.

After excluding amounts not yet due or under installment plans (49.0%), those under court-ordered stays pending administrative litigation (21.5%), and those in rehabilitation or bankruptcy proceedings (4.1%), the actual unpaid amount stands at 19.8 billion won (25.4%).

The number of medical institutions closing without paying fines has also risen. Only two facilities closed in 2021 and one in 2022, but the figure jumped to six in 2023, seven in 2024, and 12 through November 2025.

These institutions were penalized under regulations allowing fines in lieu of business suspension orders but closed their doors without payment. Some critics point to a pattern of "sanction evasion," where operators shut down facilities after receiving fine notices only to reopen under different formats.

The ministry said it is pursuing compulsory collection through payment notices and asset seizures for unpaid fines. However, officials acknowledged that collection can take considerable time when closed facilities lack sufficient assets or when legal disputes drag on.

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AI-translated from Korean. Quotes from foreign sources are based on Korean-language reports and may not reflect exact original wording.