Unlicensed Medical Practice

Providing or receiving money or economic benefits in exchange for referring patients to a medical institution or medical personnel is strictly prohibited under the Medical Service Act.

Representative problematic cases include the following.

• Discounting a patient's out-of-pocket payment or providing cash or gift certificates
• Broker conduct involving fees for referring patients to a hospital
• Referral structures that channel foreign patients to specific hospitals

Such conduct may not stop at mere inducement, and it can extend to aiding and abetting unlicensed medical practice or to joint principal liability, which makes it highly risky.

Unlicensed medical practice does not result in punishment of only the person who actually performs the procedure.

• Where a non-medical person is instructed to perform a medical act
• Where medical support staff are tacitly permitted or aided in performing acts beyond the scope of their license
• Where a hospital operator knows of this and fails to manage or supervise it

The medical practitioner involved, the hospital director, and the actual operator may all be subject to criminal liability.

In particular, internal hospital duty-allocation charts, instruction messages, CCTV footage, and medical records are often used as evidence of aiding or conspiracy.

Under the Medical Service Act, in certain exceptional situations an unlicensed person may also perform medical practice within a limited scope.

However, even in these cases the conditions and procedures prescribed by Ordinance of the Ministry of Health and Welfare must be followed, and any act beyond the permitted scope is regarded as unlawful.

• A person who is not a licensed medical practitioner performs a medical act

• A licensed medical practitioner performs a medical act beyond the scope of their license

• A person directs an unlicensed individual to perform a medical act, or instructs or aids a licensed practitioner in performing a medical act outside their license

• A person lends a medical license to another, or arranges the lending of a license

Where a person commits an act that constitutes an unlicensed medical act as described above, the following criminal punishment may apply.

▶ Medical Service Act Article 87-2 (Penalty Provisions)

• Suspension of license qualification (generally three months or more)
• Revocation of license where the violation is serious

Revocation of a license is a disposition that directly affects a medical practitioner's professional livelihood, and a long-term restriction applies before reissuance.

• Suspension of the medical institution's operations (typically one to three months)
• Aggravated disposition in the case of repeated violations

A suspension of operations goes beyond a simple administrative sanction and may lead to a halt in revenue, a decline in trust, and a chain of complaints.

① Commencement of the investigation

The police or prosecutors begin an investigation into a suspected unlicensed medical practice based on an accusation or on their own detection of the case.

During this process, a search and seizure, examination of witnesses, and interrogation of the suspect may take place.

② Initial response

In the early stages of the investigation, it can be important to clearly ascertain the facts and to prepare evidence and a legal response strategy.

③ Statements and submission of evidence

Caution is needed when making statements to the investigative authorities, and it can be important to actively prepare and submit evidence that may support a reduction of the sentence.

① Decision on whether to indict

The prosecution decides whether to indict based on the results of the investigation. If the charges are recognized, the case is referred to a formal trial.

② Trial procedure

At trial, the defendant's statements, examination of evidence, and questioning of witnesses take place.

During the trial, defense counsel's pleading and review of the legal issues play a key role.

③ Judgment and sentence

Unlicensed medical practice may be punished by imprisonment with labor for up to 5 years or a fine of up to 50 million won, and depending on the circumstances, a suspended sentence, a fine, or an actual custodial sentence may be imposed.

Whether the offender is a first-time offender, the degree of harm, and whether the offender shows remorse may affect the sentence.