Presidential Office: "Bold Investment in 5 Major Healthcare Reform Budgets... No Compromise on 2,000 Personnel" (Comprehensive)

Seong Tae-yoon Policy Director Briefing
Establishment of Special Account for Medical Sector
"Essential Medical Financial Investment
is the Foundation of the Healthcare System"
Implementation of National Responsibility System for Resident Training

Sung Tae-yoon, Chief of Policy Office at the Presidential Office, is giving a briefing on current issues at the Presidential Office building in Yongsan, Seoul, on the 27th.
[Image source=Yonhap News]

On the 27th, the Presidential Office stated, "Bold financial investment in essential medical care is the cornerstone for making our country's healthcare system sustainable," and announced, "We will unveil five major financial projects for medical reform centered on the national responsibility system for resident training and establish a special account for the medical community."

Through measures such as the national responsibility system for resident training and the establishment of a regional medical development fund, the aim is to revitalize essential and regional medical care and improve the quality of healthcare. However, it was reiterated that there is no possibility of adjustment or compromise regarding the "increase of 2,000 medical school admissions."

Policy Chief Seong Tae-yoon said in a briefing at the Yongsan Presidential Office that morning, "To properly rebuild the collapsed essential medical care, bold investment that goes beyond previous approaches is essential," adding, "The government will elevate the medical sector to a priority level akin to constitutional duties such as national security and public safety and invest intensively."

Essential Medical Care Support Included as a Key Area for Financial Investment for the First Time

The government is currently in the process of drafting next year's budget and reported the budget formulation guidelines at the Cabinet meeting the day before, in accordance with Article 29 of the National Finance Act. In these guidelines, the government included support for essential medical care as a key area for financial investment for the first time. Chief Seong explained, "This is the first step of bold investment to complete the big picture of medical reform," and added, "The budget formulation guidelines reported to the Cabinet reflect the government's strong will for national financial investment in medical reform."

In particular, Chief Seong said, "Next year's budget will be centered on the five major financial projects for medical reform," and stated, "We will solidify resident training and promote appropriate improvements in treatment so that residents can focus on their training, nurturing them into competent specialists." The five major financial projects are ▲ national responsibility system for resident training ▲ establishment of a regional medical development fund ▲ expansion of financial support for essential medical care ▲ expansion of compensation resources to build a safety net for medical accidents ▲ and expansion of the essential medical research and development (R&D) budget.

Support will also be provided for improving the quality of medical education, expanding educational and research facilities to secure adequate space, educational training equipment, and faculty salaries to expand infrastructure capable of responding to the increase in medical school admissions. Additionally, full support and investment will be promised for regional flagship national universities where medical school quotas have been significantly increased.

To enable long-term investment reflecting regional characteristics, a regional medical development fund will be established, and financial support for maintaining essential medical functions such as children's hospitals will be greatly expanded. Efforts will also be made to expand compensation resources for building a safety net for medical accidents. Chief Seong said, "We will provide 50% of the national subsidy for resident liability insurance premiums, review raising the compensation limits and expanding coverage for unavoidable obstetric medical accidents," and added, "We will significantly expand the essential medical R&D budget to strengthen the research functions of regional flagship hospitals leading future medicine and to build an advanced bio-ecosystem."

President Yoon Suk-yeol visited Cheongju Korea Hospital on the afternoon of the 26th and received an explanation about the Cardiovascular Center from the head of the hospital's Cardiovascular Center. [Image source=Yonhap News]

Securing Funds for Special Account for Essential Medical Care and Regional Medical Development Fund

Furthermore, plans were indicated to strengthen capabilities in severe emergency, pediatric, and obstetric care. Chief Seong emphasized, "We will establish a cooperative treatment system between regional flagship tertiary hospitals and secondary hospitals to create an efficient treatment distribution system between the most severe and high-difficulty procedures, rare disease treatment, and general severe and mild care."

He continued, "To maintain and develop essential medical capabilities, it is necessary to secure separate funds such as a special account for essential medical care and a regional medical development fund," and said, "Improving the treatment of residents who have been working under poor conditions and excessive working hours, and ensuring smooth training outside the metropolitan area require national financial support."

Chief Seong requested active participation from the medical community, stating, "For bold financial investment to enhance the completeness of medical reform and to translate into reforms that reflect field demands with tangible impact, active participation from the medical community is necessary." He added, "The specific projects and details of next year's budget will be largely finalized within the next two months, making this the most critical period for budget formulation," and said, "We plan to promptly establish a special committee for medical reform to prepare concrete plans for financial investment in essential medical care, and we hope for active participation from the medical community."

A senior official from the Presidential Office reaffirmed that there is no possibility of adjusting the 2,000 increase requested by the medical community, stating, "The allocation for the 2,000 increase has already been completed," and added, "We ask the medical community, including the Korean Medical Association which has presented strong conditions such as withdrawal of the increase, to return to dialogue without preconditions."