April 26, 2024

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Following the cancellation of the license for the nation’s first for-profit medical center, its operator Shanghai-based Greenland Group -- which has made investments in Jeju Special Self-Governing Province -- is set to pull out from the medical care business, according to a mail sent out to its employees.

In the mail sent to about 50 employees, Greenland said that it has reached a point where it has no option but to shut down the hospital business.

“[The Jeju] government has given approval on condition that the medical center can only treat foreign patients, but we cannot possible launch operations under such conditions,” the company said, announcing the termination of employment. 

The hospital added that “it has filed a lawsuit against the conditional approval and also asked the government to solve unemployment issues by acquiring the hospital or seeking other methods to no avail.”

In December, after a 15-month review and public discussions, Jeju Island granted permission to Greenland on the condition that it treats only foreigners. The Chinese group has filed a lawsuit against the partial permission, saying that it should be allowed to cater to domestic patients to sustain the business.

On April 17, the government revoked its partial license as Greenland failed to start operations within the three-month deadline ended March 4.

The firm’s plan to build a for-profit hospital was approved by the Ministry of Health and Welfare in December 2015 under the Park Geun-hye administration. It submitted an application to the Jeju Island government in August 2017 to open a hospital in Health Care Town in Seogwipo and hired 134 employees including nine doctors and 28 nurses.

By Park Ga-young (gypark@heraldcorp.com)