Ministry of Health and Welfare Restructures Organization... Establishes "Regional-Essential-Public Healthcare Bureau" to Strengthen Essential Care

New Dedicated Divisions for Medical AI, Healthcare Resources, and Non-Benefit Management

Expanded Functions for National Pension Fund Operations and Disability Abuse Response

The Ministry of Health and Welfare will undergo a sweeping organizational overhaul to advance key policy objectives of the Lee Jaemyung administration, including strengthening regional, essential, and public healthcare, expanding medical artificial intelligence (AI), and improving the rate of return for the National Pension Fund.

On July 14, the Ministry of Health and Welfare announced that the partial amendment bill for the “Ministry of Health and Welfare and Its Affiliated Organizations’ Organization Act,” which contains these changes, was approved at a Cabinet meeting. With this reorganization, the Ministry will create one new bureau, one new office, five divisions, and two teams, increasing its staffing by 29 positions. The revised structure will be implemented from July 21, following publication in the official gazette and the proclamation process.

As part of this organizational restructuring, the new “Regional-Essential-Public Healthcare Bureau” (at the director-general level) will be established to oversee policies aimed at bridging regional healthcare gaps, expanding the national responsibility for essential care, and reinforcing public healthcare. Previously, policies for regional, essential, and public healthcare were fragmented across several bodies such as the Health Policy Bureau, Essential Medical Support Bureau, and Public Health Policy Bureau, resulting in diminished policy effectiveness. The Ministry addressed this by creating the director-general level Regional-Essential-Public Healthcare Bureau to consolidate related policy functions.

This new bureau will establish four new divisions under the Regional Essential Healthcare Policy Bureau and Public Healthcare Policy Bureau: the Regional Healthcare Policy Division, Essential Healthcare Policy Division, Regional Healthcare Workforce Development Division, and National University Hospital Policy Division. Through this, the Ministry aims to unify the process from establishing comprehensive plans for essential healthcare to nurturing regional and public healthcare professionals and fostering national university hospitals.

A new “Medical Resources Policy Bureau” (at the director level) will also be created to provide comprehensive management of healthcare resources. This bureau will oversee the supply and demand of healthcare professionals, beds, specialized medical equipment such as MRI machines, and the integration of biobanking resources like blood, organs, and tissues. The Ministry expects this will provide a solid foundation for systematically implementing medical workforce planning, optimal allocation of healthcare resources, and strengthened safety measures.

There will be a significant expansion of dedicated organizations for pursuing healthcare reform initiatives. An independent “Healthcare System Innovation Division” will be launched to oversee the restructuring of tertiary hospitals and the reform of the healthcare delivery system, while a new “Non-Benefit Management Team” will be established to manage support for catastrophic medical costs, administration of uncovered items, and the reporting system for non-benefit items.

Notably, the existing “Healthcare Data Promotion Division” will be expanded and restructured as the “Medical AI Data Policy Division.” The Ministry plans to bolster this function to drive the widespread adoption of medical AI throughout the healthcare sector in accordance with the government’s “Korea AI Action Plan” and to place exclusive responsibility for related policy development within this division.

In the welfare sector, a new “Fund Management Division” will be established to respond to the expansion of the National Pension Fund. The current “National Pension Finance Division” will be renamed to “Fund Operations System Division” and tasked with operating the Fund Management Committee and overseeing strategic asset allocation. The newly established Fund Management Division will be exclusively responsible for investment diversification, exercising voting rights, and responsible investment practices. The goal is to improve long-term returns for the National Pension Fund and strengthen overall fund sustainability.

In response to a series of recent abuse cases at residential facilities for individuals with disabilities, the “Disability Abuse Response Team” will also be formalized as an official entity. What had been operated as a temporary task force will now become a permanent body, dedicated to preventing abuse of people with disabilities, supporting victims, and assisting organizations that advocate for their rights.

Minister of Health and Welfare Jung Eungyeong stated, “Through this reorganization, we have created a solid foundation to systematically implement the administration’s key policy objectives, such as strengthening regional, essential, and public healthcare and improving the National Pension Fund's returns. We will continue to deliver meaningful health and welfare outcomes that the public can feel in their daily lives.”

This content was produced with the assistance of AI translation services.