Government to Pay a Total of 90.1 Billion KRW in Compensation for Losses to COVID-19 Medical Institutions and Others

COVID-19 hospital beds [Image source=Yonhap News]

[Asia Economy Reporter Byun Seon-jin] The government will pay a total of 90.1 billion KRW in loss compensation to COVID-19 medical institutions by the 31st.

The Central Disaster and Safety Countermeasures Headquarters of the Ministry of Health and Welfare announced on the 28th that, following the deliberation and resolution of the Loss Compensation Deliberation Committee on the 26th, it will pay 87.2 billion KRW to 212 COVID-19 treatment medical institutions, of which 41.1 billion KRW will be paid to infectious disease-dedicated hospitals. The loss compensation is in the form of an "advance payment," which partially pays the estimated loss amount before the final loss is confirmed.

Loss compensation for losses incurred due to closure, business suspension, and disinfection orders will be paid to a total of 310 institutions, including 102 medical institutions, 13 pharmacies, 64 general business establishments, and 130 social welfare facilities, amounting to 2.2 billion KRW. Compensation for medical institutions, pharmacies, and general business establishments that complied with closure, business suspension, and disinfection orders from the government or local governments has been paid monthly since August 2020.

Following the transition to a general medical system, the government is sequentially conducting settlements to finalize the loss compensation procedures for treatment medical institutions that received advance payments after the closure of COVID-19 dedicated hospitals. As a result of this month's settlement, an additional 700 million KRW was paid to 17 institutions, completing the settlement for a total of 33 treatment institutions.

The total loss compensation paid by the government from April 2020 to this month amounts to 8.3911 trillion KRW. Among this, advance payments (including settlements) for treatment medical institutions were paid to 600 medical institutions totaling 8.1531 trillion KRW, and loss compensation for closure and business suspension was paid to 75,882 institutions amounting to 23.8 billion KRW.