In a recent case before the Suwon District Court, the court addressed how the definition of "hospital closure" should be interpreted in pharmacy transfer agreements that include a goodwill (권리금) return clause. The dispute involved pharmacy buyer A suing seller B for the return of 125 million KRW plus delayed damages.
The court concluded that the decisive moment for a hospital's closure is the point at which actual medical treatment and prescription issuance stop, rather than the date the closure is officially reported. The special agreement in question did not explicitly require a formal "closure report" (폐업신고). Moreover, even if a hospital announces a temporary suspension of operations (휴업) but never resumes business and subsequently terminates its lease, the court views the suspension point as the effective closure date.
Based on this interpretation, the court ordered B to pay A the agreed goodwill amount of 125 million KRW along with applicable delayed damages.
Regulatory UpdatesSep 14, 2026•3 min read
Suwon Court Rules Hospital Closure Determined by End of Medical Services for Pharmacy Goodwill Refund
The Suwon District Court held that a hospital is considered closed when medical services and prescription issuance cease, affecting goodwill return clauses in pharmacy transfer agreements.
Compiled by the Pharmacountry team · Source: KPA News
Topics:
Ratings
(0)
(0)
(0)
(0)
(0)
Leave your rating