Compensation of 685.2 Billion Won Paid to Medical Institutions and Businesses Closed Due to COVID-19

Total Accumulated Compensation of 6.6252 Trillion KRW Since April 2020

[Asia Economy Reporter Jo In-kyung] The government will provide an additional 685.2 billion KRW in compensation for losses to medical institutions that treated COVID-19 patients and businesses that complied with quarantine measures such as closures and suspension of operations.

The Central Disaster and Safety Countermeasure Headquarters of the Ministry of Health and Welfare announced on the 27th that, following the review and resolution of the Loss Compensation Deliberation Committee held on the 25th, the 26th round of loss compensation payments will be made on the 31st.

Since April 2020, the government has been provisionally calculating the losses incurred by medical institutions due to COVID-19 treatment each month and providing advance payments (provisional payments made before the final loss amount is confirmed).

This month, 673 billion KRW will be paid to 440 treatment medical institutions, including infectious disease-dedicated hospitals. Of this, compensation for securing treatment beds accounts for 669.9 billion KRW (99%), and compensation for reduced general patient treatment fees is 4.3 billion KRW (1%).

A total of 9.4 billion KRW will also be paid to 2,737 institutions, including medical institutions, pharmacies, and general businesses, that complied with closure, suspension of operations, and disinfection orders. This includes 356 medical institutions, 20 pharmacies, 2,338 general businesses, and 23 social welfare facilities.

From April 2020 to this month, the cumulative amount of loss compensation paid by the government totals 6.6252 trillion KRW, including 6.4277 trillion KRW in provisional payments to 590 treatment medical institutions and 197.6 billion KRW in loss compensation for 67,443 businesses subject to closure or suspension of operations.