Regulator imposes fine of $384,000 on pharmaceutical firm over illegal rebates
Fair Trade Commission building in Sejong / Yonhap
Korea's antitrust regulator said Sunday it has decided to slap a fine of 500 million won ($384,000) on a local pharmaceutical firm for providing illegal rebates to doctors.
The punitive action against Ahn-Gook Pharmaceutical, listed on the secondary KOSDAQ market, came as the firm had provided 6.2 billion won in cash to doctors from 2011 to 2018 to have them prescribe its products, according to the Fair Trade Commission (FTC).
The company additionally provided gifts worth 2.7 billion won, including laptops and vacuum cleaners, to hospitals.
"Such actions disrupt the sustainability of the national health insurance system, leading to hikes in drug prices as companies rely on unfair measures instead of making efforts to develop new products or cut costs," the FTC said.
The FTC vowed to continue to work closely with related organizations, including the drug safety ministry, to crack down on violations that hinder fair competition in the pharmaceutical market. (Yonhap)