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ENFORCEMENT DECREE OF THE ACT ON SUPPORT FOR OVERSEAS EXPANSION OF HEALTHCARE SYSTEM AND ATTRACTION OF INTERNATIONAL PATIENTS

Presidential Decree No. 27241, jun. 21, 2016

 Article 1 (Purpose)
The purpose of this Decree is to provide for the matters delegated from the Act on Support for Overseas Expansion of Healthcare System and Attraction of International Patients and other matters necessary for the enforcement of the Act.
 Article 2 (Scope of Overseas Expansion of Medical Service)
“Actions as prescribed by Presidential Decree” in subparagraph 1 (f) of Article 2 of the Act on Support for Overseas Expansion of Healthcare System and Attraction of International Patients (hereinafter referred to as the “Act”) shall mean supporting or educating a medical institution or personnel in a foreign country on medical knowledge or technology.
 Article 3 (Report of Overseas Expansion of Medical Service)
(1) A founder of a medical institution under Article 3 of the Medical Service Act who intends to report expansion of medical services abroad pursuant to Article 4 (1) of the Act shall submit a letter of report of the overseas expansion as prescribed in Ordinance of the Ministry of Health and Welfare (including any letters of report electronically prepared) to the Minister of Health and Welfare, attached with the documents (including any documents electronically prepared) as follows:
1. A duplicate of a permit certifying establishment of a medical institution or a duplicate of a certificate of report on establishment of a medical institution, as prescribed in Article 33 of the Medical Service Act;
2. Documents verifying overseas expansion of medical service as classified in accordance with each of the following subparagraphs:
(a) Overseas expansion of medical service pursuant to subparagraph 1 (a) of Article 2 of the Act: a duplicate of the document proving establishment operation of an overseas medical institution: Provided, That in cases of having established or acquired an overseas corporation to establish or operate an overseas medical institution, a duplicate of the document providing establishment or acquisition of the relevant overseas medical institution;
(b) Overseas expansion of medical service pursuant to subparagraph 1 (b) through (f) of Article 2 of the Act: a duplicate of an agreement concluded for the relevant overseas expansion of medical service;
3. A business operation plan for the overseas expansion of medical service as determined by the Minister of Health and Welfare;
4. A corporation’s articles of incorporation which specifies overseas expansion of medical service (applicable only to a corporation).
(2) The report prescribed in paragraph (1) shall be made within the period as classified under each of the following:
1. Overseas expansion of medical service pursuant to subparagraph 1 (a) of Article 2 of the Act: within 45 days from the date of receiving a concerned foreign medical institution’s certification or approval or other dispositions concerning establishment or operation of a foreign medical institution: Provided, That in cases of having established or acquired an overseas corporation to establish or operate an overseas medical institution, the report shall be made within 45 days from the date of aforementioned establishment or acquisition;
2. Overseas expansion of medical services pursuant to subparagraph 1 (b) through (f) of Article 2 of the Act: within 45 days from the date of concluding an agreement on the concerned overseas expansion of medical service.
(3) Where there is any deficiency in the report made pursuant to paragraph (1) or it is deemed necessary to ascertain facts about such report, etc., the Minister of Health and Welfare may designate a period of up to five days and order supplementary measures within such period.
(4) Where the Minister of Health and Welfare has received a report made pursuant to paragraph (1), a certificate of report of overseas expansion of medical services shall be issued as prescribed by Ordinance of the Ministry of Health and Welfare within 10 days from the date of such report (excluding the period for supplementary measures taken pursuant to paragraph (3)).
(5) A founder of a medical institution who has reported pursuant to paragraph (1) shall, where his/her business operation plan for overseas expansion of medical service is altered or an agreement for the overseas expansion of medical service is altered, without delay notify such alteration to the Minister of Health and Welfare.
(6) Other than those matters provided for in paragraphs (1) through (5), detailed matters necessary for the procedure, and method of reporting, alteration of report, etc., shall be determined by Ordinance of the Ministry of Health and Welfare.
 Article 4 (Specialized Medical Departments Subject to Mandatory Assignment of Medical Specialist)
The “specialized medical department prescribed by Presidential Decree” under the proviso to Article 6 (1) 1 of the Act shall mean the specialized department prescribed in Article 3 of the Regulation on Training and Qualification Test, etc. of Medical Specialist.
 Article 5 (Evaluation for Designation of Institutions for Attracting Foreign Patients)
(1) Standards of evaluation to be used for a medical institution registered for the attraction of foreign patients pursuant to Article 6 (1) (hereinafter referred to as “medical institution for attraction of international patients”) and a person who has registered for attraction of foreign patients pursuant to Article 6 (2) (hereinafter referred to as “international patient attraction agency”) to be designated pursuant to Article 14 (1) of the Act shall be as classified according to each of the following:
1. Medical institution for attraction of international patients:
(a) Performance of attracting international patients;
(b) Performance of public relations and activities for attraction of international patients;
(c) The number of professional personnel to attract international patients;
(d) Type of medical departments and the number of medical specialists;
(e) Level of contribution to domestic medical services;
(f) Other matters prescribed by the Minister of Health and Welfare as necessary for evaluation of performance including attraction and medical treatment of international patients and the status of relevant disputes.
2. International patient attraction agency:
(a) Matters under subparagraph 1 (a) through (c);
(b) Other matters prescribed by the Minister of Health and Welfare as necessary for evaluation of performance including attraction and medical treatment of international patients and the status of relevant disputes.
(2) A medical institution for attraction of international patients and an international patient attraction agency (hereinafter referred to as “attraction institution”) shall, where the attraction institution intends to be evaluated and designated pursuant to Article 14 (1) of the Act, submit a letter of application (including an application electronically prepared) prescribed by Ordinance of Ministry of Health and Welfare to the Minister of Health and Welfare, attached with evidentiary documents (including documents in an electronic form) concerning the standards of evaluation as classified under each subparagraph of paragraph (1).
(3) Where the Minister of Health and Welfare evaluates an attraction institution pursuant to paragraphs (1) and (2), he/she may order payment of any actual expenses for performing the evaluation as a fee.
(4) Where the Minister of Health and Welfare has completed an evaluation responding to the application for evaluation or designation pursuant to paragraph (2), he/she shall inform the applicant of the evaluation results and whether the applicant is designated.
(5) Where it is necessary for the evaluation and designation under paragraph (4), the Minister of Health and Welfare may request the concerned institution, corporation or group or individual person, etc. to submit required information or provide opinion.
(6) Where the Minister of Health and Welfare has designated an attraction institution in accordance with the evaluation results under paragraph (4), he/she shall post the designation on the website of the Ministry of Health and Welfare.
(7) Other matters than those provided for in paragraphs (1) through (6), matters necessary for detailed evaluation standards, methods of evaluation, evaluation procedures, notification of evaluation results, handling fee, etc. shall be determined and publicly notified by the Minister of Health and Welfare.
 Article 6 (Indication of Designated Attraction Institutions and Re-Designation)
(1) An attraction institution designated by the Minister of Health and Welfare pursuant to Article 14 (1) of the Act (hereinafter referred to as “designated attraction institution”) may use the mark of a designated attraction institution prescribed in the attached Table 1 in accordance with the determination and public notice made by the Minister of Health and Welfare.
(2) Where a designated attraction institution intends to be re-designated pursuant to the main sentence of Article 14 (3) of the Act, it shall file its application thereof with the Minister of Health and Welfare no later than three months prior to expiry of the designation period.
(3) Article 5 shall apply mutatis mutandis to the re-designation standard and procedure, etc. pursuant to paragraph (2). For this case, “designation” shall be deemed “re-designation”.
(4) “Matters as prescribed by Presidential Decree” under Article 14 (4) 3 of the Act means the matters concerning preferential designation for international medical trainees or patients who are entering into the Republic of Korea in accordance with an intergovernmental treaty.
 Article 7 (Support for the Medical Institutions Expanding Medical Services Overseas)
(1) With respect to the medical institutions having reported their overseas expansion of medical services pursuant to Article 4 of the Act (hereinafter referred to as “medical institution expanding medical services overseas”), financial support or tax credit falling under each of the following subparagraphs may be provided pursuant to Article 17 (1) of the Act:
3. Preferential treatment for insurance rates or payment time of insurance premiums, etc. pursuant to Article 8-3 of the Trade Insurance Act;
4. Support through establishing small and medium enterprises and promotional funding pursuant to Articles 63 and 67 of the Small and Medium Enterprises Promotion Act;
5. Preferential credit guarantees for small and medium enterprises pursuant to Article 3 of the Credit Guarantee Fund Act;
6. Technology credit guarantees pursuant to Article 28 (1) 2 of the Korea Technology Credit Guarantee Fund Act;
7. Tax credit in accordance with the provisions of tax-related Acts.
(2) Where a medical institution expanding medical services overseas intends to receive the support prescribed in paragraph (1), any of the following requirements shall be satisfied:
1. Details and region, etc. of overseas expansion of medical services corresponds to the policies of the Government;
2. Funding is deemed necessary based on the type, scale, etc. of overseas expansion of medical services;
3. Funding is deemed necessary for the overseas expansion of medical services, taking into account of financial status and organizational size, etc. of a medical institution;
4. Other cases where funding is deemed necessary, in light of a relevant medical institution’s characteristics or history of overseas expansion of medical services, or its performance, etc. of medical services.
(3) Where it is necessary to receive the support under paragraph (1), a medical institution expanding medical services overseas may request the Minister of Health and Welfare to confirm if the medical institution satisfies the requirements for support under paragraph (2).
(4) Where a medical institution expanding medical services overseas has received the support under paragraph (1), it shall inform the Minister of Health and Welfare of the support.
(5) Other matters than those prescribed in paragraphs (2) through (4), the details necessary for prescribing the requirements and confirmation, etc. of the aforementioned support shall be determined and publicly notified by the Minister of Health and Welfare.
 Article 8 (Establishment, Etc. of Comprehensive Plan)
(1) Where it is necessary to establish the comprehensive plan to support overseas expansion of medical services and attraction of international patients (hereinafter referred to as “comprehensive plan”) under Article 18 (1) of the Act, the Minister of Health and Welfare may request the head of concerned central administrative agencies, the head of local governments or the head of the public institutions under the Act on the Management of Public Institutions to submit information or opinions.
(2) Where the Minister of Health and Welfare has established the aforementioned comprehensive plan pursuant to Article 18 (1) of the Act, he/she shall give public notice of the details of the comprehensive plan in the official gazette, and inform the heads of the concerned central administrative agencies and local governments of the same.
(3) Where the Minister of Health and Welfare establishes an annual implementation plan pursuant to Article 18 (3) of the Act (hereinafter referred to as “implementation plan”), he/she shall go through review of the policy review committee under Article 19 (1) of the Act (hereinafter referred to as “committee”). In this case, paragraphs (1) and (2) shall apply mutatis mutandis to the procedures for establishing the implementation plan.
 Article 9 (Policy Review Committee)
(1) The term of office of a committee member who is commissioned pursuant to Article 19 (3) 2 and 3 of the Act shall be two years: Provided, That the term of office of a committee member who is newly commissioned due to dismissal, etc. of his/her predecessor shall be the remainder of the predecessor’s term of office.
(2) The Minister of Health and Welfare may decommission or dismiss the concerned committee member, where a member of the committee falls under any of the following subparagraphs:
1. Where the committee member became unable to perform his or her duties due to a mental disorder;
2. Where the committee member is involved in a misconduct in connection with his or her duties;
3. Where the committee member is deemed not suitable as a member of the committee due to neglect of his or her duty, injury to dignity, etc;
4. Where the committee member voluntarily expressed his or her difficulty in performing duties.
(3) The chairperson of the committee represents the committee and exercise overall control of affairs of the committee.
(4) The meetings of the committee shall require attendance of the majority of all the incumbent members of the committee, and the resolution of the meetings shall require consent of the majority of those present.
(5) To efficiently perform the affairs of the committee, a specialized sub-committee which is comprised of relevant professional personnel may be established within the committee.
(6) Matters other than those provided for in paragraphs (1) through (5) that are necessary for the establishment and the operations of the committee and the specialized sub-committee shall be determined by the chairperson of the committee after a resolution of the committee.
 Article 10 (Annual Report)
Where it is necessary to prepare the report under Article 20 (1) of the Act, the Minister of Health and Welfare may request the head of concerned central administrative agencies, the head of local governments, the head of the public institutions under the Act on the Management of Public Institutions, a founder of the medical institution expanding medical services overseas and/or the attraction institution to submit information or opinions.
 Article 11 (Designation, etc. of Supporting Institution)
(1) Standards for designation of the institutions or groups to be designated by the Minister of Health and Welfare pursuant to Article 21 (1) of the Act (hereinafter referred to as “supporting institution”) shall be as provided for in the following subparagraphs:
1. A supporting institution must have at least one department and at least five professional personnel designated to exclusively and independently perform the affairs under each subparagraph of Article 21 (1) of the Act;
2. A supporting institution must have the facility and equipment necessary to perform the affairs under each subparagraph of Article 21 (1) of the Act;
3. A supporting institution must have an on-line work processing system that is necessary to perform the affairs under each subparagraph of Article 21 (1) of the Act;
4. A supporting institution must have finances necessary to perform the affairs under each subparagraph of Article 21 (1) of the Act.
(2) An institution or a group intending to be designated by the Minister of Health and Welfare pursuant to Article 21 (1) of the Act shall submit its application for designation as prescribed by Ordinance of Ministry of Health and Welfare (including an application electronically prepared) to the Minister of Health and Welfare, attached with the documents (including any documents electronically prepared) falling under following subparagraphs:
1. A document verifying satisfaction of the standards of designation pursuant to each subparagraph of paragraph (1);
2. Articles of incorporation or equivalent regulations for business operation of the institution or group;
3. A document showing business performance of the institution or group for the preceding three (3) years (where the period of business activity is less than three years, referring to the documents showing business performances during such period of business);
4. A document satisfying the execution of financial plan and settlement documents of the institution or group for the preceding two years (where the period of business activity is less than two years, referring to the documents satisfying the execution of financial plan and settlement status during such period of business).
(3) Where the Minister of Health and Welfare has received an application for designation pursuant to paragraph (2), the Minister shall determine whether to accept the application taking into account the matters under each of the following subparagraphs, and notify the results of the aforementioned determination to the applicant:
1. Whether or not the standards of designation under paragraph (1) is met;
2. Whether or not the applicant is able to perform the applied business and is in sound financial condition;
3. Whether or not the purposes of incorporation or business areas of the supporting institution are relevant to overseas expansion of medical services and attraction of international patients.
(4) Other matters than those prescribed in paragraphs (1) through (3), the details necessary for providing the standard and method of, application etc. for the aforementioned designation shall be determined and publicly notified by the Minister of Health and Welfare.
 Article 12 (Delegation of Affairs to Supporting Institution)
(1) Where the Minister of Health and Welfare delegates its affairs to the supporting institution pursuant to Article 21 (1) of the Act, the Minister shall publicly notify the trustee’s name and address, representative’s name, delegated matters, etc. in the official gazette, and post the same information on the website of the Ministry of Health and Welfare.
(2) A supporting institution delegated pursuant to paragaraph (1) shall submit a written business operation plan and financial execution plan for the delegated affairs to the Minister of Health and Welfare.
(3) “Services as prescribed by Presidential Decree” in Article 21 (1) 5 of the Act means acceptance of the report of business performance of an attraction institution in accordance with Article 11 of the Act.
(4) Where the Minister of Health and Welfare delegates its affairs to the supporting institution pursuant to Article 21 (1) of the Act, the Minister may support the supporting institution by providing all or part of the expenses falling under each of the following subparagraphs:
1. Personnel expenses, rent and other operating expenses in the performance of delegated affairs;
2. Expenses for establishing/maintaining the facilities/equipments/programs, etc. to be incurred in the performance of delegated affairs;
3. Other expenses deemed by the Minister of Health and Welfare as particularly necessary to efficiently perform delegated affairs.
 Article 13 (Procedures for Cancellation of Designation)
Where the Minister of Health and Welfare withdraws designation of an attraction institution or a supporting institution pursuant to Article 25 (1) or (2) of the Act, the Minister shall post the withdrawal of designation on the website of the Ministry of Health and Welfare.
 Article 14 (Standards for Calculation of Penalty Surcharge)
(1) The “amount of sale as prescribed by Presidential Decree” in the main sentence of Article 26 of the Act means the amount as classified under each of the following subparagraphs:
1. A person who has attracted international patients without formally registering as a designated attraction institution pursuant to Article 6 (1) and (2) of the Act: Total amount of sales from attracting international patients during the period of the violation;
2. A person who has violated Article 9 (1) of the Act and thereby received excessive fee: Amount obtained after subtracting the amount of fee calculated by the fee rate publicly notified by the Minister of Health and Welfare pursuant to Article 9 (2) of the Act from the amount of fee actually received as a result of attracting international patients.
(2) “Cases as prescribed by Presidential Decree” in the proviso to Article 26 of the Act means the cases where, due to a disaster, etc., the data necessary for calculating the amount of sales ceases to exist or is damaged or other cases where objective calculation of sales revenue is difficult.
(3) Detailed matters necessary for the method, etc. of calculating sales revenue as prescribed in paragraphs (1) shall be determined and publicly notified by the Minister of Health and Welfare.
 Article 15 (Payment of Reward)
(1) A relevant administrative or investigative authority having received a report or a criminal accusation with respect to a person falling under any subparagraph of Article 27 (1) of the Act shall notify this fact to the Minister of Health and Welfare without delay.
(2) Where the Minister of Health and Welfare is notified pursuant to paragraph (1), he/she shall confirm details of the notification in order to determine if the person who has reported or filed allegations is entitled to a monetary reward: Provided, That a monetary reward shall not be provided for in the cases of falling under any of the following subparagraphs:
1. Where the same report or criminal accusation is subsequently made against the same violation that has already been reported or accused in accordance with Article 27 (1) of the Act was made;
2. Where a report or accusation is filed with respect to a matter for which judicial proceedings are pending;
3. Where a report or accusation is made in violation of the relevant statutes.
(3) Where the Minister of Health and Welfare has determined if the person who has reported or accused is entitled to payment of a monetary reward pursuant to paragraph (2), the Minister shall inform of the determination to the person who has reported or accused.
(4) A person who has reported or accused shall, after being informed of the Minister’s determination for payment of a monetary reward pursuant to paragraph (3), file his/her application for the payment of the monetary reward with the Minister of Health and Welfare in accordance with the determination and public notice made by the Minister of Health and Welfare.
(5) The Minister of Health and Welfare shall make the payment of the monetary reward, pursuant to paragraph (4), to the concerned person who has reported or accused within 30 days from the date of receiving the application for payment of the monetary reward.
(6) The amount of the monetary reward under paragraph (5) shall be the amount to be determined and publicly notified by the Minister of Health and Welfare, within the scope of amount under each of the following subparagraphs:
1. Where having reported or accused an attraction institution which has attracted a person who is not an international patient: Ten million won;
2. Where having reported or accused a person who has attracted an international patient without registering for attracting international patients pursuant to Article 6 (1) and (2) of the Act: Ten million won;
3. Where having reported or accused a person who has violated Article 7, 9 or 15 of the Act: Three million won.
(7) Detailed matters necessary for the report or allegation, standards for payment of a monetary reward, methods and procedures of payment, etc. as prescribed in paragraphs (1) through (6) shall be determined and publicly notified by the Minister of Health and Welfare.
 Article 16 (Standards for Imposition of Administrative Fine)
The standards for the imposition of administrative fine pursuant to Article 31 of the Act shall be as prescribed in attached Table 2.
ADDENDA
Article 1 (Enforcement Decree)
This Decree shall enter into force on June 23, 2016.
Article 2 (Applicability to Standards for Calculation of Penalty Surcharge)
In cases of calculating the period of violation as prescribed in Article 14 (1) 1, the calculation shall be made beginning from the time of a violation committed after enforcement of this Decree.
Article 3 Omitted.