Exclusion of Jeonnam National University Hospital New Building Project from Ministry of Economy and Finance's Preliminary Feasibility Study List

Decided to Rechallenge at the 4th Financial Project Evaluation Committee in November

[Asia Economy Honam Reporting Headquarters, Reporter Yoon Jamin] The construction project of the new hospital at Chonnam National University Hospital, called the ‘Future-type New Smart Hospital,’ was excluded from the Ministry of Economy and Finance’s preliminary feasibility study target projects, and it has been decided to reattempt in November.

According to Chonnam National University Hospital on the 24th, the Ministry of Economy and Finance held the 3rd Financial Project Evaluation Committee meeting in the afternoon and reviewed the agenda regarding the new hospital construction project at Chonnam National University Hospital, ultimately deciding not to select it as a preliminary feasibility study target project.

Accordingly, Chonnam National University Hospital plans to reattempt at the 4th Financial Project Evaluation Committee scheduled for November to have the new hospital construction project selected as a preliminary feasibility study target project.

Chonnam National University Hospital has been carrying out the ‘Future-type New Smart Hospital’ construction project to overcome the physical and structural limitations of the aging hospital and establish a future-oriented medical system to reduce the medical gap between the metropolitan area and other regions.

After being inaugurated in November 2020, Hospital Director Ahn Young-geun judged that the health improvement of local residents could no longer be delayed, and in January 2021, launched the New Hospital Construction Promotion Team. After a total of 18 meetings, it was announced in November 2021 that the new hospital would be built on the Chonnam National University Hakdong Campus site.

Subsequently, Chonnam National University Hospital, together with the Korea Health Industry Development Institute, conducted a one-year preliminary feasibility analysis, which showed alignment with government policies such as ▲strengthening public healthcare ▲community-centered implementation policies ▲basic plans for redefining medical institution functions, and received an economic feasibility (B/C) score of 2.15. Based on this, a preliminary feasibility study request was submitted to the Ministry of Economy and Finance in June.

The political sphere also responded to the requests from Chonnam National University Hospital and the residents of Gwangju and Jeonnam for the construction of the new hospital.

On the 15th of last month, Seong Il-jong, Chairman of the Policy Committee of the People Power Party, met with Hospital Director Ahn Young-geun and Planning and Coordination Director Yoon Kyung-chul at the National Assembly in Seoul, stating, “We will actively cooperate to advance the construction of the new hospital at Chonnam National University Hospital to reduce the gap between local areas and the metropolitan area and promote regional balanced development.” He also said, “I will meet with Gwangju Mayor Kang Ki-jung to discuss the construction of the New Smart Hospital at Chonnam National University Hospital and encourage Gwangju City to take active measures.”

Additionally, on the 18th of last month, Kwon Seong-dong, then Acting Party Leader and Floor Leader of the People Power Party, held the 2022 Budget Policy Council at the Gwangju City Hall’s conference room, stating, “We will transform the over 40-year-old aging Chonnam National University Hospital space into a ‘Future-type New Smart Hospital’ equipped with cutting-edge medical infrastructure to provide high-quality medical services to city and provincial residents.” He promised, “Since the project cost is expected to be around 1.2 trillion won, we requested the budget authorities to include it as a preliminary feasibility study target in the first phase. We will prioritize the new construction and actively support passing the preliminary feasibility study.”

Gwangju Mayor Kang Ki-jung also visited Chonnam National University Hospital on the 16th, stating, “The new hospital construction project at Chonnam National University Hospital, a public hospital for prevention and treatment, must no longer be delayed to protect citizens’ health rights.” He added, “We will spare no administrative or financial support, including procedures for changing the land use zone and urban management plan, to ensure the new hospital construction proceeds quickly and promptly.”

However, the Ministry of Economy and Finance appears to have excluded the new hospital project from the preliminary feasibility study target projects because the urban management plan change for increasing the floor area ratio of the new hospital site at Chonnam National University Hospital has not yet been completed. Under the current floor area ratio (249.2%), new construction or expansion of the hospital is impossible.

Hospital Director Ahn Young-geun said, “There have been cases where construction projects of other national university hospitals were selected as preliminary feasibility study target projects before urban management plan changes, so I judged that with the cooperation letter from Gwangju City and the mayor’s support promise, there would be no problem for Chonnam National University Hospital as well.” He added, “However, since there is no objection to the Ministry of Economy and Finance’s decision, we plan to reattempt at the 4th Financial Project Evaluation Committee meeting in November. If unsuccessful, we will continue to challenge next year to ensure that the new hospital construction project, a long-cherished wish of the local residents, proceeds.”