The judgment below is reversed, and the case is remanded to Busan High Court.

The grounds of appeal are examined.

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.