Korea Times reported that Hyundai Steel plans to build a hospital near its steel plant in Dangjin, South Chungcheong Province.
The affiliate of Hyundai Motor Group owns some 10,800 square meters of land set aside for a general hospital close to the apartment complex for employees at the steel mill
Some observers speculate that the group is trying to enter the medical business as the conglomerate is yet to have a hospital while Samsung Group boasts a large network of hospitals and Doosan Group operates one through its acquisition of Chung Ang University that has a medical center.
An official at Hyundai Steel said that "We can confirm only that we have land for a hospital. The rest of the plan will have to be decided on in close cooperation with the government."
The company said that when the steelmaker was negotiating with the city government of Dangjin for construction of the steel plant, the latter said that the area lacked schools and medical facilities.
It is known that back in 2007, Hyundai Motor Group chairman Mr Chung Mong koo and the city governor agreed to build a high school and a hospital.
Hyundai's blast furnace type integrated steel mill was completed in April 2010, ending POSCO's monopoly.
The plan to set up a high school has progressed well with recent approval from the education ministry. Building a hospital, however, faces more obstacles because the medical industry, in general, is more strictly regulated by the government.
When large conglomerates try to expand their network of hospitals or enter the business, they often face strong opposition from local hospitals and medical professionals who fear conglomerates with ample financial power would take away most patients.
The Dangjin city government said that it does not know how far the plan to build a hospital has progressed because the initiative is led by Hyundai Steel.
One business daily reported two months ago that the city wants the hospital to be completed by 2018. When contacted, an official of the city government denied knowing any details but said that "We would like to have a hospital as soon as possible, and the city does not have any general hospital yet."
Hyundai Motor Group has made donations to the Asan Foundation, which operates the country's largest hospital in Seoul, Asan Medical Center. The foundation belongs to Hyundai Heavy Industries whose major shareholder is Mr Chung Mong joon, a younger brother of Hyundai Motor Group chairman.
Source - Korea Times
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