The current Act prescribes that where the Minister of Health and Welfare, etc., issues an order to suspend the business of a medical institution, transport service provider, or ambulance operator and deems that such suspension is likely to bring serious harm to public health care, he/she may impose a penalty surcharge of not exceeding 50 million won in lieu of the disposition of business suspension.

However, under the Enforcement Decree of the Act, calculation of the amount of penalty surcharge in lieu of the disposition of business suspension is made by multiplying the period of business suspension by a penalty surcharge per day, which means even in a case where the total annual revenues exceed 9 billion won, penalty surcharge per day is only 215,000 won and the upper limit on penalty surcharge is fixed at 50 million won, rendering the effect of sanctions on medical institutions whose total annual revenues amount to billions of won quite minimal.

Accordingly, where a penalty surcharge is imposed in lieu of the disposition of business suspension, the Amendment aims to revamp the system by setting the upper limit on penalty surcharge at not more than 3/100 of revenues, thereby ensuring the effectiveness of the imposition of penalty surcharge and of appropriate sanctions on unlawful behaviors (Article 57, paragraph 1).

Where penalty surcharge is imposed in lieu of the disposition of business suspension, the upper limit on penalty surcharge shall be not more than 3/100 of revenues (Article 57).