Loan Support of 100 Billion Won in Policy Funds for 94 Emergency Medical Institutions in Non-Metropolitan and Underserved Areas

Low-Interest Loans at 1–2% Per Year:
Five-Year Grace Period with Ten-Year Amortized Repayment


Comprehensive Funding Support:
From Facility Improvements to Staff Salaries and Debt Refinancing

The Ministry of Health and Welfare announced on August 2 that it will temporarily provide 100 billion won in long-term, low-interest policy loans this year to 94 emergency medical institutions located in non-metropolitan areas and medically underserved regions.

Ministry of Health and Welfare Sejong Government Complex. Photo by Yonhap News Agency

This loan support program is intended to help alleviate the management difficulties faced by emergency medical institutions. Eligible organizations are regional emergency medical centers, local emergency medical centers, and local emergency medical institutions designated under the Emergency Medical Services Act. Medically underserved regions are defined as 98 cities, counties, and districts where more than 30% of the local population cannot reach a local emergency medical center within 30 minutes or a regional emergency medical center within one hour.

The maximum loan amounts are set at 4 billion won for regional emergency medical centers, 2 billion won for local emergency medical centers, and 1 billion won for local emergency medical institutions. The fixed interest rate is 2% per year, with a five-year grace period followed by ten years of installment repayment. The interest rate is lowered to 1% per year for institutions located in medically underserved regions.

Funds can be broadly used for improving emergency room facilities and upgrading medical equipment, as well as for covering operating costs such as medical staff salaries or refinancing debts with financial institutions.

The Ministry of Health and Welfare accepted applications from non-metropolitan regional and local emergency medical centers, as well as local emergency medical institutions in medically underserved regions, from June 10 to July 3. After internal and external committee reviews, the funding recipients were selected. A total of 18.2 billion won was allocated to nine regional emergency medical centers (about 2 billion won per center on average), 44 local emergency medical centers (including seven in underserved regions) received 44.9 billion won (about 1 billion won per center on average), and 41 local emergency medical institutions (all located in underserved regions) received 36.9 billion won (about 900 million won per institution on average).

Selected institutions will be able to apply for and receive loans from August after being reviewed by KB Kookmin Bank branches designated for handling the loans.

Lee Junggyu, Director General for Public Healthcare Policy at the Ministry of Health and Welfare, stated, "We hope that this loan support will ease the operational challenges faced by emergency medical institutions outside the metropolitan area and serve as a catalyst for maintaining a stable foundation for essential medical services." He added, "We will continue to strengthen support so that medical disparities between regions are reduced and everyone in the country can receive appropriate emergency medical services within the golden hour, regardless of their location."

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