Prosecutors raided the offices of Samil Pharm Co. Ltd. on Wednesday as they broadened their investigation into allegations the mid-sized drug manufacturer offered illegal kickbacks worth 2.1 billion won (US$1.93 million won) to doctors and hospitals.
The prosecution has been looking into suspicions that the company offered money and other kickbacks, known as "rebates," to doctors and officials from 302 hospitals nationwide in exchange for prescribing its products, an illegal business practice that drives up costs for patients.
Investigators seized computer hard discs and relevant documents during the raid at the drug maker's headquarters in southern Seoul and its branch office in Daejeon, 164 kilometers south of the capital, a prosecution official close to the investigation said.