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ACT ON ESTABLISHING AND ADMINISTRATING THE NATIONAL MEDICAL CENTER

Act No. 15441, Mar. 13, 2018

 Article 1 (Purpose)
The purpose of this Act is to contribute to the promotion of national health and the development of national health and medical services by establishing and operating the National Medical Center, thereby increasing the efficiency and satisfaction of public medical services and fostering the National Medical Center as a high-quality public health and medical institution to lead public medical services.
 Article 2 (Corporate entity)
The National Medical Center shall be a corporation.
 Article 3 (Establishment)
(1) A National Medical Center shall be established at the time when it registers such establishment at the location of its main office.
(2) Matters regarding the registration of establishment pursuant to paragraph (1) shall be the following:
1. Purpose;
2. Name;
3. The main office and affiliated organizations;
4. Names and domiciles of executive officers;
5. Method of public announcement.
 Article 4 (Articles of incorporation)
(1) The articles of incorporation of the National Medical Center shall include the following matters:
1. Purpose;
2. Name;
3. The seat of the main office and affiliated organizations;
4. Programs and finances;
5. The board of directors;
6. The organization and employees;
7. Amendments to the articles of incorporation;
8. Dissolution;
9. Methods of public announcement;
10. The conclusion of an agreement to provide human resources and technical support.
(2) If the National Medical Center intends to amend its articles of incorporation, it shall obtain authorization from the Minister of Health and Welfare. <Amended on Jan. 18, 2010>
 Article 5 (Programs)
The National Medical Center shall perform the following programs: <Amended on Jan. 18, 2010; Feb. 3, 2016; Mar. 13, 2018>
1. Development and dissemination of clinical practice guidelines for public health and medical services;
2. Prevention and management of geriatric diseases;
3. Management of diseases, such as rare and incurable diseases, which are deemed necessary to be specially managed by the State;
4. Prevention and management of medical treatment, etc. of patients resulting from infectious diseases, non-infectious diseases, or disasters;
5. Inter-Korean health and medical cooperation and international health and medical-related cooperation at home and abroad;
6. Technical support to private and public health and medical institutions;
7. Research related to medical treatment, medical science, Korean medicine treatment, and Korean medical science;
8. Training of medical residents and medical personnel;
9. Deleted; <Mar. 13, 2018>
10. Support for various programs regarding emergency medical services under Article 25 of the Emergency Medical Service Act;
11. Support for various programs necessary for medical support for high-risk pregnant or nursing women, premature babies, etc. under Article 10-6 of the Mother and Child Health Act;
12. Support for various business affairs related to public health and medical services under Article 21 of the Public Health And Medical Services Act;
13. Other programs entrusted by the Minister of Health and Welfare in relation to public health and medical services.
 Article 6 (Board of directors)
(1) The National Medical Center shall have a board of directors to deliberate and resolve on the following matters:
1. Budget and settlement of accounts;
2. A business plan;
3. Amendment to the articles of incorporation;
4. Management, operation, and use of donations;
5. Other matters prescribed by this Act or the articles of incorporation as the authority of the board of directors in connection with the operation of the National Medical Center.
(2) The board of directors shall consist of a president and directors.
(3) The president shall convene the board of directors and shall be the chairperson thereof.
(4) A majority of the members of the board of directors shall constitute a quorum, and any resolution thereof shall require the concurring vote of at least a majority of those present.
(5) The auditor may attend and speak at a meeting of the board of directors.
 Article 7 (Executive officers)
(1) The National Medical Center shall have up to 11 directors, including 1 president, and 1 auditor as its executive officers.
(2) Executive officers, other than the president, shall serve on a part-time basis.
(3) Directors shall include 2 outside personnel with extensive knowledge of and experience in public health and medical services or expertise in hospital management.
(4) The president shall be appointed by the Minister of Health and Welfare, as prescribed by the articles of incorporation. <Amended on Jan. 18, 2010>
(5) The appointment of the executive officers and the auditor shall be prescribed by the articles of incorporation.
 Article 8 (Terms of office of executive officers)
(1) The president shall hold office for a term of 3 years and may be appointed consecutively on a yearly basis.
(2) Each director shall hold office for a term of 2 years and may be appointed consecutively on a yearly basis.
(3) The auditor shall hold office for a term of 2 years and may be reappointed only once.
(4) In the event that the office of the president or director is vacated before his or her term is completed, the term of office of the newly appointed president or director shall newly commence.
 Article 9 (Grounds for disqualification of executive officers)
None of the following persons shall become an executive officer of the National Medical Center:
1. A person who is not a national of the Republic of Korea;
2. A person who falls under any subparagraph of Article 33 of the State Public Officials Act.
 Article 10 (President)
(1) The president shall represent the National Medical Center, have general supervision and control of the business affairs of the National Medical Center, and direct and supervise employees under his or her jurisdiction.
(2) The president shall not be dismissed against his or her will during his or her term of office, except in any of the following cases:
1. Where he or she violates this Act, an order issued under this Act, or the articles of incorporation;
2. Where he or she hinders the operation of the National Medical Center through accounting fraud or by intent or gross negligence;
3. Where it becomes extremely difficult or impossible for him or her to perform duties due to mental or physical disabilities;
4. Where performance is poor according to the evaluation of operation under Article 21 (1).
(3) When it is intended to dismiss the president for falling under any subparagraph of paragraph (2), a proposal for dismissal shall be made through a resolution with the consent of at least 2/3 of the fixed number of directors.
(4) If the president is unable to perform his or her duties due to any unavoidable cause, a person prescribed by the articles of incorporation from among directors shall act on behalf of the president.
 Article 11 (Establishment of affiliated organizations and appointment and dismissal of employees)
(1) The National Medical Center shall have affiliated hospitals and other necessary organizations and employees.
(2) Employees shall be appointed and dismissed by the president, as prescribed by the articles of incorporation.
 Article 12 (Duties of auditor)
The auditor shall prepare a comprehensive audit report every year and submit it to the Minister of Health and Welfare and the board of directors. <Amended on Jan. 18, 2010>
 Article 13 (Concurrent offices)
(1) An educational official working for a university or college defined in subparagraph 1 of Article 2 of the Higher Education Act may concurrently engage in education, research, and medical treatment of the National Medical Center with permission from the president or dean of the university or college to which he or she belongs, if necessary to conduct programs under Article 5.
(2) If a public educational official concurrently performs the business affairs of the National Medical Center pursuant to paragraph (1), the duties, remuneration, and other matters necessary for concurrent positions shall be prescribed by Presidential Decree.
 Article 14 (Financial resources)
The National Medical Center shall be operated with profits from programs under Article 5, contributions under Article 15, donations, and other revenues.
 Article 15 (Contributions or subsidies)
(1) The State may provide contributions or subsidies to cover expenses incurred in relation to the programs and operation of the National Medical Center, within the budget or from the National Health Promotion Fund established under the National Health Promotion Act.
(2) The National Medical Center shall submit a budget request for contributions for the following year to the Minister of Health and Welfare by the end of April of each business year, as prescribed by Presidential Decree. <Amended on Jan. 18, 2010>
(3) Individuals, corporations, or organizations may contribute money or other property to the National Medical Center to support the programs of the National Medical Center.
 Article 16 (Gratuitous lease of State property)
(1) If necessary for the establishment and operation of the National Medical Center, the State may lease State property to the National Medical Center free of charge, notwithstanding the State Property Act.
(2) Matters necessary for the gratuitous lease of a State property under paragraph (1) shall be prescribed by Presidential Decree.
 Article 17 (Business year)
The business year of the National Medical Center shall coincide with the fiscal year of the Government.
 Article 18 (Submission of business plans)
(1) The National Medical Center shall prepare and submit a business plan and a budget bill and obtain approval from the Minister of Health and Welfare before the commencement of each business year, as prescribed by Presidential Decree. <Amended on Jan. 18, 2010>
(2) If the National Medical Center intends to modify important matters prescribed by Presidential Decree among the details of a business plan and budget bill referred to in paragraph (1), it shall submit a business plan and budget bill specifying the details and reasons to be modified in advance and obtain approval from the Minister of Health and Welfare. <Amended on Jan. 18, 2010>
 Article 19 (Submission of statement of settlement of accounts)
The National Medical Center shall prepare a statement of settlement of accounts of revenues and expenditures for each business year, as prescribed by Presidential Decree, and submit it to the Minister of Health and Welfare within 2 months after the commencement of the following fiscal year, after undergoing an audit by an accounting firm under Article 23 of the Certified Public Accountant Act and deliberation and resolution by the board of directors. <Amended on Jan. 18, 2010>
 Article 20 (Business cooperation and conclusion of agreements)
(1) The National Medical Center may promote business affairs regarding research related to public medical services, performance of programs, technical support, etc. in cooperation with other medical institutions, universities, and research institutes.
(2) If necessary for conducting programs under Article 5, the president may conclude an agreement with another medical institution, university, college, or research institute with respect to human resources and technical support.
 Article 21 (Evaluation of operation and guidance)
(1) The Minister of Health and Welfare shall evaluate the operation of the National Medical Center, as prescribed by Presidential Decree, and take necessary measures according to the results thereof. <Amended on Jan. 18, 2010>
(2) The standards for evaluation of operation under paragraph (1) shall include the management status of the National Medical Center, the performance of public health and medical services programs for the vulnerable social groups, customer services, etc. of the National Medical Center.
(3) Matters necessary for the detailed standards, procedures, etc. for the evaluation of operation under paragraphs (1) and (2) shall be prescribed by Ministerial Decree of Health and Welfare. <Amended on Jan. 18, 2010>
 Article 22 (Dispatch of public officials)
(1) If necessary to perform its business affairs, the National Medical Center may request the heads of relevant administrative agencies to dispatch public officials under their jurisdiction via the Minister of Health and Welfare. <Amended on Jan. 18, 2010>
(2) The head of the relevant administrative agency in receipt of a request under paragraph (1) may dispatch public officials under his or her jurisdiction.
 Article 23 (Duty of confidentiality)
No executive officer or employee of the National Medical Center or a person who was in such position shall divulge or misappropriate any confidential information he or she has become aware of in the course of performing his or her duties.
 Article 24 (Application mutatis mutandis of Civil Act)
Except as provided in this Act, the provisions of the Civil Act governing incorporated foundations shall apply mutatis mutandis to the National Medical Center.
 Article 25 (Guidance and supervision)
The Minister of Health and Welfare may take measures necessary for supervision, such as ordering the National Medical Center to report its programs, ordering amendments to its articles of incorporation or regulations after inspecting the status of its programs or properties, and ordering other necessary dispositions. <Amended on Jan. 18, 2010>
 Article 25-2 (Legal fiction as public officials for purposes of applying penalty provisions)
Executive officers and employees of the National Medical Center shall be deemed public officials for the purposes of applying Articles 129 through 132 of the Criminal Act.
[This Article Added on Feb. 3, 2016]
 Article 26 (Penalty provisions)
Any person who divulges or misappropriates any confidential information he or she has become aware of in the course of performing his or her duties, in violation of Article 23, shall be punished by imprisonment with labor for not more than 3 years or by a fine not exceeding 30 million won. <Amended on Sep. 19, 2017>
ADDENDA <Act No. 9592, Apr. 1, 2009>
Article 1 (Enforcement date)
This Act shall enter into force 1 year after the date of its promulgation; provided, Articles 2, 3, and 10 of the Addenda shall enter into force on the date of its promulgation.
Article 2 (Preparation for establishment)
(1) The Minister of Health and Welfare shall establish the Committee for the Establishment of the National Medical Center (hereinafter referred to as the "Establishment Committee") within 3 months from the promulgation date of this Act in order to handle business affairs concerning the establishment of the National Medical Center. <Amended on Jan. 18, 2010>
(2) The Establishment Committee shall be comprised of up to 7 incorporators commissioned by the Minister of Health and Welfare, and the Vice Minister of Health and Welfare shall be the chairperson. <Amended on Jan. 18, 2010>
(3) The Establishment Committee shall prepare the articles of incorporation of the National Medical Center, affix its name and seal or sign it, and then obtain authorization therefor from the Minister of Health and Welfare. <Amended on Jan. 18, 2010>
(4) The Establishment Committee shall complete the registration of incorporation of the National Medical Center by the date this Act enters into force.
(5) When the president of the National Medical Center is appointed, the Establishment Committee shall transfer its business affairs to the president without delay.
(6) The Establishment Committee shall be deemed dissolved when the transfer of business affairs under paragraph (5) is completed, and its members shall be deemed dismissed.
Article 3 (Incorporation expenses)
The State shall bear expenses incurred in establishing the National Medical Center.
Article 4 (Gratuitous succession to State property)
(1) Notwithstanding Article 22 (2) of the National Health Promotion Act, among State property under the jurisdiction of the Minister of Health and Welfare as at the time this Act enters into force, the land where the former National Medical Center is located (including land located at 18-20, 18-79, 18-222, 18-223, 18-224, Eulji-ro 6-ga, Jung-gu, Seoul, and roads) and its annexed buildings (hereafter in this Article referred to as the "Real Estate") shall be contributed to the National Health Promotion Fund (hereafter in this Article referred to as the "Fund") established pursuant to Article 22 (1) of the National Health Promotion Act. <Amended on Jan. 18, 2010>
(2) The Real Estate contributed pursuant to paragraph (1) shall be separately operated under the public health and medical service account within the Fund. In such cases, the amount equivalent to the value of the Real Estate shall be used to cover expenses incurred in the construction, relocation, operation of the National Medical Center and public health and medical services thereof.
(3) State properties and commodities (excluding the Real Estate contributed to the Fund under paragraph (1)) managed by the former National Medical Center as at the time this Act enters into force shall be transferred to the National Medical Center without compensation.
(4) The public health and medical service account referred to in paragraph (2) shall continue to exist until the amount equivalent to the value of the Real Estate is used up pursuant to paragraph (2).
Article 5 (Succession to rights and obligations)
(1) The National Medical Center established under this Act shall comprehensively succeed to the rights and obligations of the former National Medical Center.
(2) The title of the former National Medical Center indicated in the register of rights and obligations or in other public records, which is to be comprehensively succeeded by the National Medical Center pursuant to paragraph (1), shall be deemed that of the National Medical Center.
Article 6 (Payment of transferred money)
If there is a transferred money under the jurisdiction of the former National Medical Center in the budget of the transferred money from the general account to be transferred into the special account as at the time this Act enters into force or there is a surplus according to the settlement of accounts of revenues and expenses for the year in which the National Medical Center is established, it shall be disbursed to the National Medical Center as a contribution or subsidy.
Article 7 (Budget at time of establishment)
(1) The National Medical Center established under this Act may execute the budget under the jurisdiction of the former National Medical Center in accordance with the previous practices until the budget of the National Medical Center is finalized at the time of its establishment.
(2) The expenses executed pursuant to paragraph (1) shall be deemed to have been executed in accordance with the budget established by the National Medical Center when the budget of the National Medical Center is established.
Article 8 (Appointment of president at time of establishment)
(1) Notwithstanding Article 7 (4), the Minister of Health and Welfare shall appoint the president of the National Medical Center who is appointed for the first time after this Act enters into force. <Amended on Jan. 18, 2010>
(2) Notwithstanding Article 7 (5), directors and auditors at the time of establishment of the National Medical Center shall be appointed by the Minister of Health and Welfare. <Amended on Jan. 18, 2010>
Article 9 (Special cases concerning employment of employees)
(1) Out of public officials belonging to the former National Medical Center as at the time the National Medical Center was established, the Minister of Health and Welfare shall determine those who continue to maintain their status as public officials and those whose status is converted to employees of the National Medical Center. <Amended on Jan. 18, 2010>
(2) A person who holds office in the former National Medical Center as at the time the National Medical Center was established (excluding a person whose status as a public official is confirmed to be continuously maintained upon his or her wish under paragraph (1)) shall be deemed appointed to the National Medical Center.
(3) When an employee is appointed as an employee of the National Medical Center after retiring from the former National Medical Center pursuant to paragraph (2), he or she shall be deemed to have retired from the status of a public official.
(4) The retirement age of a person who retires from the former National Medical Center and is appointed as an employee of the National Medical Center pursuant to paragraph (2) shall be governed by the retirement age under the State Public Officials Act applicable to his or her job grade at the time of his or her retirement; provided, if the retirement age of the employee of the National Medical Center is longer than the retirement age under the State Public Officials Act, the retirement age of the employee of the National Medical Center shall apply.
Article 10 (Transitional measures concerning budgeting)
A budget bill of the National Medical Center for the first business year that begins after the establishment of the National Medical Center may be prepared by the Establishment Committee.
Article 11 (Transitional measures concerning special accounts for responsible administrative agencies)
Notwithstanding Article 1 of the Addenda, the Government Enterprise Budget Act shall apply to the adjustment of receipts and disbursements of revenues and expenditures for the fiscal year in which this Act enters into force, and the National Finance Act shall apply to the preparation and submission of reports on the settlement of accounts.
ADDENDA <Act No. 9932, Jan. 18, 2010>
Article 1 (Enforcement date)
This Act shall enter into force 2 months after the date of its promulgation; provided, Article 4 (24) of the Addenda shall enter into force on April 2, 2010, Article 4 (11) and (107) of the Addenda shall enter into force on December 30, 2010, and Article 4 (26) and (31) of the Addenda shall enter into force on January 1, 2011, respectively.
ADDENDUM <Act No. 13984, Feb. 3, 2016>
This Act shall enter into force on the date of its promulgation.
ADDENDUM <Act No. 14879, Sep. 19, 2017>
This Act shall enter into force on the date of its promulgation.
ADDENDA <Act No. 15441, Mar. 13, 2018>
This Act shall enter into force on the date of its promulgation; provided, the amended provisions of subparagraph 11 of Article 5 shall enter into force on the date 6 months elapse after the date of its promulgation.