After the parliamentary conflict at Chonnam National University Hospital, KRW 150 billion deficit and debt ratio doubled...raising the need for government support
Oct 23, 2025
Chonnam National University Hospital is known to face a serious financial crisis due to the overlapping increase in ordinary wages and a decrease in profits due to legislative conflicts.
In a recent parliamentary audit, lawmakers also emphasized to officials from the Ministry of Education who attended the inspection, saying, `We need to expand state funding for national hospitals based in the region,' raising concerns in the political and community.
According to Chonnam National University Hospital, the cumulative deficit is expected to exceed 150 billion won after the parliamentary conflict that has continued since March last year. In particular, net losses for this year are estimated to be 88.4 billion, more than quadrupled compared to 2023. It also borrowed an additional 46 billion won due to worsening cash liquidity, and the resulting debt ratio is expected to exceed 400%, doubling from the end of 2023.
In particular, due to the Supreme Court's decision on the ordinary wage in December last year, employees' ordinary wages have increased by about 30%, which requires an additional 10 billion won in labor costs in December. In addition, an additional ordinary wage lawsuit worth about 50 billion won is underway, and the hospital's finances are approaching the worst as soon as the ruling is confirmed.
In addition, the Supreme Court on the 11th of last month confirmed the original ruling in favor of the plaintiff in a wage lawsuit demanding that a resident of a large hospital in Seoul pay an allowance for 40 hours a week, raising concerns about further financial deterioration.
The annual deficit at Bitgoeul Chonnam National University Hospital is also a big burden. Bitgoeul Chonnam National University Hospital currently has a total accumulated deficit of 120 billion won, with a deficit of more than 17 billion won per year.
Soon after the parliamentary conflict, Chonnam National University Hospital is pushing for an emergency medical system to overcome the management crisis, doing its best to secure financial stability, cooperating with the government and the local government system, and actively requesting national and municipal support, but the financial situation is at its worst.
At the National Assembly Education Committee's parliamentary audit held at Chonbuk National University on the 22nd, lawmakers also pointed out the need for state support to resolve the financial difficulties of Chonnam National University Hospital. Kim Yong-tae, a member of the People's Power, expressed concern about deepening financial difficulties, while Moon Jung-bok and Kim Moon-soo of the Democratic Party of Korea argued for the need to come up with measures to normalize management and expand state funding.
Chonnam National University Hospital said "It is an urgent situation to drastically reduce all expenses other than essential operating expenses, including salaries. The doctors have returned, but it could take more than three years for the hospital to normalize." As all employees are doing their best to normalize with desperation, we hope the government and local communities will come up with realistic measures together."
On the other hand, Chonnam National University Hospital withdrew the recommendation of the Board of Education and sought a win-win path between labor and management on the 'Unlawful Banner of Trade Union 42 million won' discussed at the parliamentary audit.
In a recent parliamentary audit, lawmakers also emphasized to officials from the Ministry of Education who attended the inspection, saying, `We need to expand state funding for national hospitals based in the region,' raising concerns in the political and community.
According to Chonnam National University Hospital, the cumulative deficit is expected to exceed 150 billion won after the parliamentary conflict that has continued since March last year. In particular, net losses for this year are estimated to be 88.4 billion, more than quadrupled compared to 2023. It also borrowed an additional 46 billion won due to worsening cash liquidity, and the resulting debt ratio is expected to exceed 400%, doubling from the end of 2023.
In particular, due to the Supreme Court's decision on the ordinary wage in December last year, employees' ordinary wages have increased by about 30%, which requires an additional 10 billion won in labor costs in December. In addition, an additional ordinary wage lawsuit worth about 50 billion won is underway, and the hospital's finances are approaching the worst as soon as the ruling is confirmed.
In addition, the Supreme Court on the 11th of last month confirmed the original ruling in favor of the plaintiff in a wage lawsuit demanding that a resident of a large hospital in Seoul pay an allowance for 40 hours a week, raising concerns about further financial deterioration.
The annual deficit at Bitgoeul Chonnam National University Hospital is also a big burden. Bitgoeul Chonnam National University Hospital currently has a total accumulated deficit of 120 billion won, with a deficit of more than 17 billion won per year.
Soon after the parliamentary conflict, Chonnam National University Hospital is pushing for an emergency medical system to overcome the management crisis, doing its best to secure financial stability, cooperating with the government and the local government system, and actively requesting national and municipal support, but the financial situation is at its worst.
At the National Assembly Education Committee's parliamentary audit held at Chonbuk National University on the 22nd, lawmakers also pointed out the need for state support to resolve the financial difficulties of Chonnam National University Hospital. Kim Yong-tae, a member of the People's Power, expressed concern about deepening financial difficulties, while Moon Jung-bok and Kim Moon-soo of the Democratic Party of Korea argued for the need to come up with measures to normalize management and expand state funding.
Chonnam National University Hospital said "It is an urgent situation to drastically reduce all expenses other than essential operating expenses, including salaries. The doctors have returned, but it could take more than three years for the hospital to normalize." As all employees are doing their best to normalize with desperation, we hope the government and local communities will come up with realistic measures together."
On the other hand, Chonnam National University Hospital withdrew the recommendation of the Board of Education and sought a win-win path between labor and management on the 'Unlawful Banner of Trade Union 42 million won' discussed at the parliamentary audit.
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This article was translated by Naver AI translator.
