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๐Ÿ‡ฐ๐Ÿ‡ท South Korea /Health & Science

Supplies scarce at Bucheon nursing facilities amid management crisis

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • A South Korean nursing hospital and nursing home face a financial crisis, struggling to secure essential supplies like food and medical materials.
  • The crisis stems from the financial difficulties of Daesung Foundation, the entrusted management organization, which filed for court receivership.
  • The city of Bucheon is seeking a new management entity and plans to provide emergency funding, but legal disputes and questions about the privatization model persist.

Bucheon City's public nursing hospital and nursing home are in crisis, struggling to secure basic necessities like food and medical supplies due to the financial collapse of their managing body, the Daesung Foundation. The foundation, which was selected to manage the facilities starting in 2025, filed for court receivership in June, leaving behind significant unpaid debts including retirement funds, insurance premiums, and supplier payments.

Union representatives have highlighted the dire situation, with one online chat message from March 23 stating, "Nearby supermarkets have heard the rumors, so they say they won't give us supplies unless we pay for the ingredients first." Another message detailed issues like unrepaired television screens, decaying medical waste, and a shortage of paper towels. A union official confirmed that the hospital's nutrition team struggled to procure food due to a lack of funds, though emergency support from Bucheon City eventually secured supplies.

Nurses have also faced shortages, extending the replacement cycle for medical supplies and sometimes resorting to borrowing from other wards or purchasing items personally. Caregivers at the nursing home are reportedly not receiving retroactive pay for minimum wage increases. The total unpaid debts, including retirement funds, insurance, and vendor payments, amount to over 1.1 billion won.

Bucheon City has accused the Daesung Foundation of embezzling funds and terminated their management contract. While a new management entity was selected on August 1, the Daesung Foundation disputes the contract termination, stating it is invalid under bankruptcy law. This legal battle creates uncertainty for the facilities' future.

Critics question Bucheon City's model of privatizing management without direct budget support, which has led to consistent deficits. The facilities incurred a net loss of 816.9 million won in 2024 under a previous foundation and are projected to lose 234.12 million won in 2025. Union leaders advocate for direct city management or increased support for private management, similar to Seongnam City's model. However, a city official stated there are no plans to change the management structure but confirmed the city will provide initial funding to the new foundation, which must be repaid later.

DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.