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ACT ON THE ESTABLISHMENT OF NATIONAL UNIVERSITY-AFFILIATED HOSPITALS

Act No. 4350, Mar. 8, 1991

Amended by Act No. 5454, Dec. 13, 1997

Act No. 5982, May 24, 1999

Act No. 6101, Dec. 31, 1999

Act No. 6400, Jan. 29, 2001

Act No. 6711, Aug. 26, 2002

Act No. 7796, Dec. 29, 2005

Act No. 7888, Mar. 24, 2006

Act No. 8637, Oct. 17, 2007

Act No. 8852, Feb. 29, 2008

Act No. 10071, Mar. 17, 2010

Act No. 11690, Mar. 23, 2013

Act No. 12177, Jan. 7, 2014

 Article 1 (Purpose)
The purpose of this Act is to promote the development of medical science and contribute to the improvement of public health through education and research in medical science under the Higher Education Act and medical examination and treatment by establishing national university-affiliated hospitals (excluding Seoul National University Hospital).
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 2 (Corporate Status)
A national university-affiliated hospital (hereinafter referred to as "university hospital") shall be a corporate entity.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 3 (Registration)
(1) A university hospital shall come into existence upon registration for its incorporation at the principal place of business.
(2) Matters necessary for registration of incorporation under paragraph (1) and for other registrations shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 4 (Articles of Association)
(1) The articles of association of a university hospital shall include the following matters:
1. Purposes;
2. Name;
3. Principal place of business;
4. Matters concerning its activities;
5. Matters concerning education and research in medical science and pharmaceutics, etc.;
6. Matters concerning operation of board of directors;
7. Matters concerning organization;
8. Matters concerning executive officers and employees;
9. Matters concerning assets and accounting;
10. Matters concerning amendment of the articles of association;
11. Matters concerning public notices;
12. Matters concerning dissolution.
(2) Amendment of the articles of association of a university hospital shall be subject to approval from the Minister of Education. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 5 (Incorporation)
(1) A university hospital shall be incorporated in a national university (hereinafter referred to as "related university") which has the medical department (including the department of pharmacy or the pharmaceutical department where such department is established; hereinafter referred to as "medical sciences").
(2) Where necessary, a university hospital may have a branch hospital, as prescribed by the articles of association.
[This Article Wholly Amended by Act No. 10071. Mar. 17, 2010]
 Article 6 (Name of University Hospital)
A university hospital's name shall be "hospital" added to the name of the related university.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 7 (Prohibition of Use of Similar Name)
No person who is not a university hospital under this Act shall use the name of a university hospital under Article 6 or the name similar thereto.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 8 (Activities)
A university hospital shall conduct the following activities: <Amended by Act No. 12177, Jan. 7, 2014>
1. Clinical education of students in medical sciences;
2. Practice of residents and training of medical care personnel;
3. Research related to medical sciences;
4. Clinical studies;
5. Medical examinations and treatment services;
6. Pubic health and medical service programs prescribed in subparagraph 2 of Article 2 of the Public Health and Medical Services Act;
7. Other activities required for the improvement of public health.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 9 (Obligations of Public Health and Medical Institutions)
(1)  A university hospital shall faithfully perform the obligations of the public health and medical institutions prescribed in Article 7 of the Public Health and Medical Services Act.
(2) A university hospital shall work for the improvement of public health, providing high quality public health and medical services to the public.
[This Article Newly Inserted by Act No. 12177, Jan. 7, 2014]
 Article 10 (Executive Officers)
(1) A university hospital shall have 11 directors including the chairperson of the board of directors, and one auditor. <Amended by Act No. 12177, Jan. 7, 2014>
(2) The president of the related university shall be the chairperson of the board of directors, and directors shall be the following persons (hereinafter referred to as "ex officio directors") and persons appointed by the Minister of Education at the recommendation of the board of directors. In such cases, the directors other than the ex officio directors shall include at least one external person that has abundant knowledge and experience in hospital management: <Amended by Act No. 11690, Mar. 23, 2013, Act No. 12177, Jan. 7, 2014>
1. The president of the relevant university hospital;
2. The dean of the medical college of the related university;
3. The president of the dental hospital of the related university (only applicable where a dental hospital is established in the relevant university);
4. One person nominated respectively by the Minister of Strategy and Finance, the Minister of Education, and the Minister of Health and Welfare from among Grade III public officials of the relevant Ministry and public officials in general service belonging to the Senior Civil Service;
5. The Vice Mayor or Vice Governor of the Special Metropolitan City, a Metropolitan City, a Do or a Special Self-Governing Province having jurisdiction over the location of the relevant university hospital.
(3) The auditor shall be appointed by the Minister of Education at the recommendation of the board of directors. <Amended by Act No. 11690, Mar. 23, 2013>
(4) No person that falls under any grounds for disqualification under the subparagraphs of Article 33 of the State Public Officials Act shall be a director other than ex officio directors, the auditor or the president of a university hospital.
(5) Where a director other than ex officio directors, the auditor or the president of a university hospital falls under grounds for disqualification under the subparagraphs of Article 33 of the State Public Officials Act, he/she shall retire from office automatically.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 11 (Term of Office of Executive Officers)
The term of office of directors other than ex officio directors and of the auditor shall be three years, which may be renewed consecutively.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 12 (Duties of Executive Officers)
(1) The chairperson shall convene and preside over meetings of the board of directors.
(2) Where the chairperson is unable to perform his/her duties due to any unavoidable cause, performance of his/her duties on his/her behalf shall be as prescribed by the articles of association.
(3) Directors shall attend meetings of the board of directors to deliberate on proposals.
(4) The auditor shall audit the accounting and business activities of a university hospital.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 13 (Board of Directors)
(1) A university hospital shall have a board of directors to deliberate on and resolve the following matters: <Amended by Act No. 12177, Jan. 7, 2014>
1. Matters concerning an organization;
2. Matters concerning activity plans and budget and settlement of accounts;
3. Matters concerning the acquisition and disposal of property;
4. Matters concerning the amendment of the articles of association;
5. Matters concerning the formulation of the plan for public health and medical services and the implementation results thereof as prescribed in Article 8 of the Public Health and Medical Services Act;
6. Other matters deemed necessary by the board of directors.
(2) The board of directors shall be comprised of the chairperson and directors.
(3) The board of directors shall pass a resolution with the consent of a majority of the members thereof.
(4) The auditor may attend meetings of the board of directors to advance his/her opinion.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 14 (President of University Hospital)
(1) A university hospital shall have one president.
(2) The president shall represent the university hospital and have general supervision and control over its business affairs.
(3) The president shall be appointed by the Minister of Education at the recommendation of the board of directors. <Amended by Act No. 11690, Mar. 23, 2013>
(4) The president shall hold office for a term of three years, and may be appointed consecutively for only one further term.
(5) Where the president is unable to perform his/her duties due to any unavoidable cause, performance of his/her duties on his/her behalf shall be as prescribed by the articles of association.
(6) Except where the president falls under any of the following subparagraphs, he/she shall not be removed from office against his/her will during his/her term of office:
1. Where he/she violates this Act, any order issued under this Act or the articles of association;
2. Where he/she disrupts the management of the university hospital by accounting fraud, or by intention or gross negligence;
3. Where his/her performance of duties becomes highly impracticable or impossible due to his/her mental or physical disorder.
(7) Removal of the president under paragraph (6) 1 through 3 shall require a proposal for removal through a resolution passed with the concurring vote of at least 2/3 of the full number of the directors including the chairperson.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 15 (Appointment and Dismissal of Employees)
A university hospital shall employ medical care personnel and employees, and matters concerning the appointment and dismissal thereof shall be prescribed by the articles of association.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 16 (Clinical Instructors)
(1) A university hospital shall employ clinical instructors to conduct activities under the subparagraphs of Article 8.
(2) Article 16 of the Higher Education Act shall apply mutatis mutandis to official titles of and qualifications for clinical instructors under paragraph (1).
(3) Where clinical instructors under paragraph (1) are appointed as teaching staff prescribed in Article 3 of the Higher Education Act, their career as clinical instructors in a university hospital shall be deemed as a career having worked as teaching staff of the related university. <Amended by Act No. 12177, Jan. 7, 2014>
(4) Matters concerning the period of employment, procedures for employment and remuneration of clinical instructors shall be prescribed by the articles of association.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 17 (Holding of Concurrent Offices)
(1) Where it is necessary for a university hospital to conduct activities under Article 8, notwithstanding Article 64 of the State Public Officials Act, a public education official working with a related university may hold concurrent offices in a university hospital. <Amended by Act No. 12177, Jan. 7, 2014>
(2) Upon the request of the president of a university hospital, the president of the related university shall permit a public education official under paragraph (1) to hold concurrent offices. <Amended by Act No. 12177, Jan. 7, 2014>
(3)  Matters concerning the duties and remuneration, etc. of public education officials of a related university who hold concurrent offices in a university hospital pursuant to paragraph 1 shall be prescribed by Presidential Decree. <Amended by Act No. 12177, Jan. 7, 2014>
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 18 (Transfer of State Property without Compensation)
(1) Where it is necessary to establish and operate a university hospital, the Government may transfer or lend the State property to a university hospital, or allow it to use or profit from the State property, without compensation.
(2) Matters necessary for the details and conditions of and procedures for transfer or lending of the State property, or use of or making a profit from the State property under paragraph (1), etc. shall be prescribed by Presidential Decree.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 19 (Contribution or Subsidization)
(1) Where necessary for the installation of basic facilities, equipment, etc. of a university hospital, the Government may make a contribution to a university hospital.
(2) The Government shall subsidize expenses incurred in education and research in medical sciences of a university hospital within budgetary limits.
(3) Operating expenses of a university hospital, expenses incurred in the facilities and equipment, etc., and expenses for repayment of the principal and interest on a loan shall be covered with profit by the university hospital: Provided, That where there is a shortage, the Government may subsidize the university hospital.
(4) Matters necessary for making a contribution and providing a subsidy, the use and management thereof, etc. under the provisions of paragraphs (1) through (3) shall be prescribed by Presidential Decree.
(5) A natural or corporate person, or an organization may contribute money or other property to a university hospital to support its activities.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 20 (Fiscal Year)
The fiscal year of a university hospital shall coincide with the fiscal year of the Government.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 21 (Submission of Business Plans, etc.)
The president of a university hospital shall prepare a business plan and a draft budget and submit them to the Minister of Education every fiscal year in accordance with Presidential Decree. The same shall also apply to any modification thereof. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 22 (Submission, etc. of Statements of Settlement of Accounts)
(1) The president of a university hospital shall formulate a statement of settlement of accounts every fiscal year and have it audited by an accounting firm under Article 23 of the Certified Public Accountant Act, and then submit it to the Minister of Education, subject to deliberation and resolution by the board of directors, within two months after the commencement of the next fiscal year. <Amended by Act No. 11690, Mar. 23, 2013>
(2) The statement of settlement of accounts under paragraph (1) shall be accompanied by the following documents:
1. Financial statements and annexes thereto;
2. An audit report by an accounting firm under paragraph (1);
3. Other documents prescribed by Presidential Decree for clarification of the details of the settlement of accounts.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 23 (Supervision)
The Minister of Education shall direct and supervise the business activities of a university hospital, and may require report on necessary matters or submission of necessary documents concerning the business activities, accounting and property, etc. of the university hospital. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 24 (Application of Civil Act Mutatis Mutandis)
Except for matters prescribed by this Act, the provisions on incorporated foundations of the Civil Act shall apply mutatis mutandis to a university hospital.
[This Article Wholly Amended by Act No. 10071, Mar. 17, 2010]
 Article 25 (Administrative Fines)
(1) Any person that violates Article 7 shall be punished by an administrative fine of not exceeding two million won.
(2) The administrative fine under paragraph (1) shall be imposed and collected by the Minister of Education, as prescribed by Presidential Decree. <Amended by Act No. 11690, Mar. 23, 2013>
[This Article Wholly Amended by Act No. 1071, Mar. 17, 2010]
ADDENDA
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation.
Article 2 (Transitional Measures concerning National University-Affiliated Hospitals)
A national university-affiliated hospital (hereinafter referred to as "affiliated hospital") as at the time this Act enters into force shall be incorporated as a university hospital under this Act: Provided, That The Minister of Education shall determine the time of the incorporation thereof in order in consideration of property, facilities, equipment and financial condition, etc. of the affiliated hospital concerned.
Article 3 (Preparation for Incorporation)
(1) Where a universal hospital is incorporated, the Minister of Education shall appoint five incorporation commissioners or less, and have them conduct business concerning the incorporation thereof.
(2) The incorporation commissioners shall prepare the articles of association of a university hospital and obtain approval from the Minister of Education.
(3) Where the incorporation commissioners receive approval under the provisions of paragraph (2), they shall register for incorporation of a university hospital under joint signature without delay.
(4) Where the president of a university hospital is appointed, the incorporation commissioners shall transfer their business to the president of the university hospital without delay.
(5) Where transfer of the business under the provisons of paragraph (4) is completed, the incorporation commissioners shall be deemed relieved of their duties.
Article 4 (Organization Expenses)
Expenses incurred in the incorporation of a university hospital shall be borne by the university hospital concerned.
Article 5 (Lending of State Property)
Where an affiliated hospital is incorporated as a university hospital under this Act, general accounts shall succeed to State property under the control of the former affiliated hospital concerned, among special accounts of national university-affiliated hospitals (hereinafter referred to as "special accounts") without compensation, and the Minister of Education may lend State property necessary for the incorporation and operation of a university hospital among the state property to which general accounts have succeeded (including goods) to the university hospital concerned, or let it use or profit from such property without paying compensation.
Article 6 (Succession to Rights and Duties)
Where an affiliated hospital is incorporated as a university hospital under this Act, the university hospital concerned shall comprehensively succeed to the rights and duties of the former affiliated hospital.
Article 7 (Grant of Transferred Money)
When an affiliated hospital is incorporated as a university hospital under this Act, where there is transferred money under the control of the affiliated hospital concerned within the budget of transferred money from general accounts to special accounts, or surplus on settlement of accounts of revenue and expenditure in the year the university hospital is incorporated, the Minister of Education shall grant such transferred money or surplus to the university hospital concerned as a contribution or subsidy.
Article 8 (Budget at Time of Incorporation)
(1) Where an affiliated hospital is incorporated as a university hospital under this Act, the budget under the control of the former affiliated hospital may be disbursed according to the previous examples until the budget of the university hospital is decided upon.
(2) If the budget of a university hospital is approved, the expenses spent in accordance with the provisions of paragraph (1) shall be deemed to have been executed according to the budget approved.
Article 9 (Appointment of President of University Hospital at Time of Incorporation)
Notwithstanding the provisions of Article 13 (3), the Minister of Education shall appoint the president of a university hospital at the time of the incorporation thereof on the recommendation of the president of the related university.
Article 10 (Appointment of Directors Excluding Ex Officio Directors at Time of Incorporation)
Notwithstanding the provisions of Article 9 (2), the Minister of Education shall appoint directors excluding ex officio directors as at the time a university hospital is incorporated.
Article 11 (Transitional Measures concerning Employees at Time of Incorporation)
(1) An employee in active service for the former affiliated hospital as at the time a university hospital is incorporated shall be deemed to be in active service for a university hospital under this Act: Provided, That a person who does not wish such office shall hold office of a public official belonging to the Ministry of Education continuously and the fixed number thereof shall be deemed to exist specially.
(2) The age limit of an employee who has come to hold office in a university hospital in accordance with the provisions of paragraph (1) shall coincide with the former provisions: Provided, That this shall not apply to cases where the age limit of a university hospital is longer than the former age limit.
ADDENDUM <Act No. 5454, Dec. 13, 1997>
This Act shall enter into force on January 1, 1998. (Proviso Omitted.)
ADDENDA <Act No. 5982, May 24, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 6 Omitted.
ADDENDA <Act No. 6101, Dec. 31, 1999>
Article 1 (Enforcement Date)
This Act shall enter into force on January 1, 2000. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6400, Jan. 29, 2001>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation. (Proviso Omitted.)
Articles 2 through 4 Omitted.
ADDENDA <Act No. 6711, Aug. 26, 2002>
(1) (Enforcement Date) This Act shall enter into force three months after the date of its promulgation.
(2) (Transitional Measures concerning Term of Office of Auditor) Notwithstanding the amended provisions of Article 10, the term of office of the auditor in active service as at the time this Act enters into force shall coincide with the former provisions.
(3) (Relationships with Other Acts and Subordinate Statutes) Where the former Act on the Establishment of National University-Affiliated Hospitals or the expression of national university-affiliated hospital is used or cited by other Acts and subordinate statutes as at the time this Act enters into force, the Establishment of National University-Affiliated Hospitals or the expression of national university-affiliated hospital shall be deemed used or cited in lieu thereof.
ADDENDA <Act No. 7796, Dec. 29, 2005>
Article 1 (Enforcement Date)
This Act shall enter into force on July 1, 2006.
Articles 2 through 6 Omitted.
ADDENDUM <Act No. 7888, Mar. 24, 2006>
This Act shall enter into force three months after the date of its promulgation.
ADDENDA <Act No. 8637, Oct. 17, 2007>
Article 1 (Enforcement Date)
This Act shall enter into force six months after the date of its promulgation.
Articles 2 through 16 Omitted.
ADDENDA <Act No. 8852, Feb. 29, 2008>
Article 1 (Enforcement Date)
This Act shall enter into force on the date of its promulgation: Provided, That ... <Omitted>...., among the Acts amended pursuant to Article 6 of Addenda, the amended provisions of the Acts promulgated before this Act enters into force but the enforcement dates of which have not arrived shall enter into force on the enforcement date of the relevant Act, respectively.
Articles 2 through 7 Omitted.
ADDENDA <Act No. 10071, Mar. 17, 2010>
(1) (Enforcement Date) This Act shall enter into force on the date of its promulgation.
(2) (Transitional Measures concerning Penal Provisions) Where the penal provisions are applied to an offence committed before this Act enters into force, the former provisions shall apply thereto.
ADDENDA <Act No. 11690, Mar. 23, 2013>
Article 1 (Enforcement Date)
(1) This Act shall enter into force on the date of its promulgation.
(2) Omitted
Articles 2 through 7 Omitted
ADDENDA <Act No. 12177, Jan. 7, 2014>
This Act shall enter into force on the date of its promulgation.