1. Article 20 (2) of the Pharmaceutical Affairs Act provides that a person who intends to establish a pharmacy shall file for registration of establishment with the head of the competent Si/Gun/Gu, as prescribed by Ordinance of the Ministry of Health and Welfare. Article 20 (5) of the same Act provides that "where a pharmacy is to be established within facilities or premises of a medical institution (Article 20 (2))" or "where a pharmacy is established by dividing, altering or repairing part of the facilities or site of a medical institution (Article

In determining whether a pharmacy is “a facility or premises of a medical institution,” which is prohibited under Article 20(5)2 and 3 of the Pharmaceutical Affairs Act, or “a place where part of a facility or site of a medical institution is partitioned, altered, or repaired,” the legislative purport of the above provision of the Act, which, in addition to the literal meaning of the text, intends to place a pharmacy in a separate and functional place from a medical institution in order to enforce an obligation to provide outpatients to outpatients for outpatients of a medical institution in accordance with the principles of pharmaceutical distribution business, should be considered

(See Supreme Court Decisions 2003Du12004 Decided July 22, 2004; 2014Du44311 Decided July 22, 2016, etc.). The fundamental purpose of pharmaceutical industry is to prevent a pharmacy from being affiliated with a medical institution or a medical institution by sufficiently and functionally separating a pharmacy from a medical institution, and it is not to ensure that a pharmacy is independent of the building of the medical institution itself, taking into account the fact that the establishment of a pharmacy is not an establishment of a pharmacy, and that the establishment of a pharmacy is not an establishment of a medical institution’s facility or premises (Article 20(5)2 of the Pharmaceutical Affairs Act) or an “place where part of the facility or site of a medical institution is divided, altered, or repaired (Article 20(5)3 of the same Act)” as referred to in the said provision, the establishment of a pharmacy constitutes the relevant individual medical institution based on specific individual medical institution.