Healthcare

“Even Borrowing Money to Pay Doctors’ Salaries”… What’s Going On at a Public Hospital That Racked Up 29.6 Billion Won in Debt?

[2026 Parliamentary Hearings] Seoul Medical Center Short 53 Doctors… Seongnam and Daegu Also Fail to Meet Staffing Quotas Regional Medical Centers Post 560.2 Billion Won in Medical Losses… Financial Injections Also Fall Short of Plans

An Chi-yeong
2026-10-20 12:04:53
[Edaily Reporter An Chi-yeong ] The reality of public hospitals—which are borrowing money just to pay employee salaries and cannot even fill their physician quotas—has come under scrutiny during the National Assembly audit. Critics point out that while the government touts the strengthening of public healthcare, local medical centers—which are actually responsible for protecting the lives of local residents—are struggling with deficits and staffing shortages.

(Image generated by ChatGPT)


During the National Assembly Health and Welfare Committee’s parliamentary audit on the 20th, lawmakers from the Democratic Party of Korea repeatedly criticized the management crisis at local medical centers and the lack of support from the central government and local authorities.

According to Rep. Lee Su-jin of the Democratic Party of Korea, about 30 of the 35 regional medical centers posted deficits last year. Some hospitals are even burdened with unpaid wages and debt. Public hospitals, which are supposed to sustain essential regional healthcare, are struggling to secure the funds needed for their immediate operations.

Rep. Lee Soo-jin stated, “The Seoul Medical Center has borrowed 29.6 billion won since 2023 to pay employee wages and supplier invoices, and is spending approximately 1.2 billion won annually on interest.” Meanwhile, Seoul Metropolitan Government’s loss compensation funds have decreased from 37.3 billion won in 2024 to 7.1 billion won last year and 3 billion won this year. Critics point out that while hospitals have been taking on debt to cover operating expenses, support from local governments has been scaled back.

There is also a shortage of doctors. According to public data from last year presented by Assemblywoman Lee Su-jin, Seoul Medical Center hired only 226 of its 279 authorized physician positions, leaving a shortage of 53. The physician staffing rates at Seongnam City Medical Center and Daegu Medical Center also stood at only 60% and 67%, respectively. This means that both hospitals failed to fill 3 to 4 out of every 10 authorized physician positions.

Assembly Member Lee Su-jin pointed out that “the operation of public hospitals is being destabilized by the policies of local government heads” and proposed that “the specific financial responsibilities of the national and local governments be explicitly stipulated in law.”

Medical losses have grown even larger than before the COVID-19 pandemic. According to data presented by Rep. Lee In-young of the same party, medical losses at local medical centers rose from approximately 118.6 billion won before the pandemic to 509.9 billion won in 2024 and 560.2 billion won last year. This indicates that losses are mounting even as operations have failed to recover following the response to the infectious disease outbreak.

Rep. Lee In-young pointed out, “In a situation compounded by unpaid wages and aging medical equipment, a mere promise to devise countermeasures is insufficient.” He argued that, given the role of public healthcare—which must be maintained even when it is not profitable—a strategy is needed for the national government and local governments to absorb a certain level of deficit.

Seo Gil-jun, Director of the National Medical Center, also acknowledged the crisis facing regional medical centers and the limitations of the support system. He stated, “Gaps in essential medical care are emerging at regional medical centers, and the National Medical Center’s role in supporting them has been insufficient.” He explained that improvement plans tailored to regional medical demand, treatment capacity, and operational conditions must be developed, alongside technical support.

The government’s plan to expand public healthcare has also faced criticism for lacking budgetary backing. Rep. Jeon Jin-sook, a member of the same party, revealed that actual financial investment under the Second Basic Plan for Public Health and Medical Care amounted to only 64.3% of the planned amount. Critics point out that despite establishing a plan to expand public healthcare, the government failed to allocate more than one-third of the scheduled funds.

The Third Basic Plan, which is to be implemented from this year through 2030, had not yet been finalized as of October. An official from the Ministry of Health and Welfare acknowledged the delay in drafting the plan and stated, “We will prepare it promptly, incorporating the provisions of laws and policies related to essential regional healthcare.”

The National Medical Center, which is responsible for supporting public hospitals, also cited shortages of personnel and funding. Director Seo Gil-jun stated, “Although our support duties have increased due to the transfer of national university hospitals to the Ministry of Health and Welfare, no additional personnel or budget has been secured, so the existing organization is handling these tasks.” He added, “Once personnel and funding are secured, we will support national university hospitals so they can fulfill their role in providing essential regional medical care.”

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