Supreme Court: Seoul National University Hospital Cancer Center Classified as Population Concentration Facility... Subject to 'Overcrowding Surcharge'

Court: "Cancer Center, Public Corporation Offices Classified as 'Public Buildings' Subject to Charges Lawfully Imposed"

[Asia Economy Reporter Heo Kyung-jun] The Supreme Court has ruled that the Seoul National University Hospital Cancer Center qualifies as a population concentration-inducing facility and is therefore subject to the imposition of a "congestion charge."

The Supreme Court's Second Division (Presiding Justice Cho Jae-yeon) announced on the 6th that it upheld the lower court's ruling in favor of Seoul City in the lawsuit filed by Seoul National University Hospital seeking to cancel the congestion charge imposed by the city.

In 2017, Seoul City imposed a congestion charge of 70 million KRW on the Seoul National University Hospital Cancer Center expansion project, following a corrective demand from the Board of Audit and Inspection in 2016.

In response, Seoul National University Hospital filed a lawsuit requesting the cancellation of the charge, arguing that the Cancer Center should not be considered a population concentration-inducing facility under the Capital Region Readjustment Planning Act. Population concentration-inducing facilities include public offices such as public buildings belonging to public corporations. Public corporations refer to corporations established with government funding or those established directly without approval from the relevant ministerial department.

The key issue in the trial was whether medical facilities of public medical corporations fall under the category of facilities subject to congestion charges as defined by the Enforcement Decree of the Capital Region Readjustment Planning Act. Seoul National University Hospital argued during the trial that medical facilities of public corporations should not be interpreted as public offices of public corporations subject to congestion charges.

However, both the first and second trials ruled that the Seoul National University Hospital Cancer Center qualifies as a "public building corresponding to a public office of a public corporation," and thus the imposition of the congestion charge was lawful, siding with Seoul City.

The Supreme Court also agreed with the lower courts' judgment.

This content was produced with the assistance of AI translation services.