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Lending of a Medical License

Lending a medical license is a serious violation under the Medical Service Act for which criminal punishment and administrative disposition may be imposed together, so a strategic response is required from the early stage of the investigation.

CONTENTS
  • 1. Lending of a Medical License | Concept
    • - Legal Basis
  • 2. Lending of a Medical License | Penalty Levels
  • 3. Lending of a Medical License | Business Suspension and License Revocation
    • - Revocation of Approval to Establish a Medical Institution and Business Suspension
    • - License Revocation and Reissuance
    • - Imposition of a Penalty Surcharge
  • 4. Lending of a Medical License | Methods of Response
    • - Collection and Securing of Evidence
    • - Guidelines for Conduct During an Inquiry
    • - Responding to an Administrative Disposition
  • 5. Lending of a Medical License | Legal Assistance and Support

1. Lending of a Medical License | Concept

Daeryun Law Firm's explanation of the concept of lending a medical license

Lending a medical license means a medical practitioner lending to another person a license issued in their own name under the Medical Service Act, or a person who is not a medical practitioner borrowing and using that license.

The Medical Service Act of the Republic of Korea strictly limits medical acts to those who hold a medical license, and the lending of a license is prohibited under the Medical Service Act.

Legal Basis

Article 4-3 of the Medical Service Act strictly prohibits a medical practitioner from lending their license to another person.

A license granted to a medical practitioner, such as a doctor, dentist, oriental medical doctor, midwife, or nurse, must be used only by that person, and lending it to or borrowing it from another person is prohibited by law in all cases.

In addition, arranging the lending of a medical license is also prohibited by law, so all forms of transaction or brokerage related to license lending are subject to punishment.

2. Lending of a Medical License | Penalty Levels

For the act of lending a medical license, not only the person who lends the license but also the person who borrows the license and the person who arranges the lending are all subject to punishment.

This is a provision intended to clarify legal responsibility for the use of a medical license under another's name and to strengthen sanctions for violations of the duty to manage a license.

▶ Level of punishment

Medical Service Act, Article 87-2

Imprisonment with labor for up to 5 years or a fine of up to 50 million won

3. Lending of a Medical License | Business Suspension and License Revocation

Lending a medical license carries not only criminal punishment but also strict administrative sanctions.

A violation of the laws on the establishment and operation of a medical institution may result in suspension of medical practice, revocation of the establishment permit, closure of the medical institution, and similar measures, and it may extend to revocation of the license, so the lending of a medical license is regarded as a very serious legal matter.

Revocation of Approval to Establish a Medical Institution and Business Suspension

Under Article 64 of the Medical Service Act, where a medical practitioner establishes or operates a medical institution under the name of another medical practitioner or a medical corporation, the practitioner may receive a suspension of medical practice of up to one year, a revocation of the establishment permit, or an order to close the medical institution.

Where a permit is thus revoked or a suspension of medical practice is imposed, the medical practitioner concerned may not newly establish or operate a medical institution for a certain period (at least six months).

License Revocation and Reissuance

Article 65 of the Medical Service Act clearly provides for license revocation in the event of a violation of the prohibition on lending a medical license.

A medical practitioner whose license has been revoked cannot obtain the license again, but reissuance is possible under certain conditions.

Grounds for license revocation

Period during which the license cannot be obtained again

· Where the license was revoked for failure to fulfill license conditionsNo reissuance within 1 year from the date of revocation
· Where the practitioner performed medical practice during a period of suspension of qualification
· Where the practitioner received a disposition of suspension of qualification three or more times
· Where grounds for suspension of qualification arose again after the license had been reissued
No reissuance within 2 years from the date of revocation
· Where the practitioner lent or loaned the license
· Where the medical practice caused serious harm to life or body
· Where the practitioner had an unlicensed person perform surgery, blood transfusion, general anesthesia, or similar acts
· Where the license was revoked for serious grounds for disqualification
No reissuance within 3 years from the date of revocation
· Where, after the license was revoked for specific serious grounds for disqualification,
the license was revoked again on the same grounds
No reissuance within 10 years from the date of revocation
· Where the license was obtained by false or improper meansNo reissuance

To obtain reissuance, the grounds for the violation must have been resolved, clear signs of genuine reform must be shown, and an education program prescribed by Presidential Decree must be completed.

This education program includes the following content, and at least 40 hours of education are required.

• Understanding patient rights

• The role and ethics of medical practitioners

• Understanding medical-related statutes

• Other matters published by the Minister of Health and Welfare for maintaining health and medical order

The education program is conducted at an educational institution designated by the Minister of Health and Welfare, and a certificate of completion must be issued after the education is completed.

Imposition of a Penalty Surcharge

Under Article 67 of the Medical Service Act, where a medical institution commits a violation, a penalty surcharge of up to 1 billion won may be imposed in lieu of suspension of medical practice.

The penalty surcharge is determined according to the type and degree of the violation, and it may be imposed up to three times.

If it is not paid, it is collected in the same manner as delinquent local taxes.

4. Lending of a Medical License | Methods of Response

Daeryun Medical and Pharmaceutical Group methods for responding to medical license lending

When involved in an allegation of medical license lending, a prompt and systematic response is very important.

If the proper procedures are not followed, the matter may lead not only to criminal punishment but also to an administrative disposition, so one should respond actively in the following ways.

Collection and Securing of Evidence

You should systematically collect and organize all available materials related to the case, such as conversations, text messages, recordings, photographs, call records, and location information.

Organizing the circumstances at the time the incident occurred in chronological order can be of great help in clarifying your memory during the investigation or statement process.

All collected materials and statements may be used as evidence in a criminal trial, so they should be reviewed carefully before submission.

It is advisable to obtain expert advice before submitting important materials, and in order to prevent unnecessary misunderstandings, limiting the scope of submission where necessary may also be worth considering.

Guidelines for Conduct During an Inquiry

① During questioning, you should answer based on the facts and only within what you know.

It is advisable to avoid unnecessary information or speculative remarks, and to ask for clarification whenever a question is unclear.

② Controlling your emotions and remaining calm is also very important.

Even when the investigator repeatedly questions or applies pressure, you should keep your answers consistent and not lose composure.

Such an attitude can help build trust and prevent unnecessary misunderstandings.

③ You may actively exercise the right to remain silent.

When refusing to answer, you should clearly state, “I will decline to answer this question.”

Responding to an Administrative Disposition

If you wish to contest a business suspension disposition or revocation of a medical license imposed on a medical institution, you may seek relief through two procedures: administrative adjudication and administrative litigation.

First, if you consider the disposition unjust or excessive, you may file a request for administrative adjudication to seek revocation or modification of the disposition.

Administrative adjudication is a procedure through which the lawfulness of a disposition can be reviewed relatively quickly.

If you are not satisfied with the result of the administrative adjudication, or if you wish to obtain a court ruling immediately, you may file administrative litigation with the administrative court.

Administrative litigation is a procedure in which the court directly judges the lawfulness of a disposition, and it can be an effective means of response when the goal is revocation of the disposition.

▶ Filing period for administrative adjudication
Within 90 days from the date of becoming aware that the disposition was made, or within 180 days from the date the disposition was made

▶ Filing period for administrative litigation
Within 90 days from the date of becoming aware that the disposition was made, or within one year from the date the disposition was made

5. Lending of a Medical License | Legal Assistance and Support

Daeryun legal support for medical license lending

If lending of a medical license is detected, both criminal punishment and administrative sanctions under the Medical Service Act may follow.

In addition, legal liability may arise even where the lending of a medical license was not intended, so it is important to accurately understand the procedures and the level of punishment in advance through legal consultation.

On this basis, it is necessary to actively review mitigation provisions or grounds for exemption and to prepare a more effective and strategic response.

Our firm includes medical attorneys with extensive experience and expertise across various areas of law, including the Medical Service Act.

Specialists in each field, including criminal law attorneys and administrative law attorneys, also work together to support a comprehensive and systematic response that takes into account the client's situation and the complexity of the case.

If you are involved in a matter related to the lending of a medical license and need legal assistance, please feel free at any time to 🔗a medical attorney to develop a response strategy together.

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