S. Korea steps up crackdown on rebate practices in medical industry

SEOUL, Feb. 16 (Yonhap) -- South Korea's health authorities will bring criminal
charges against doctors and pharmacists who take rebates from drug makers when
purchasing medicine, government officials said Tuesday, in a move aimed at
enhancing overall transparency in the medical industry.

They could also face license suspension of up to one year, depending on the
amount and frequently of the kickbacks, according to the Ministry for Health,
Welfare and Family Affairs.
The move is part of a set of measures unveiled by the ministry to enhance
transparency in the transactions and price-setting process of the medical
industry.
Authorities have tried to crack down on rebates and other murky trade practices
but have mostly failed due to a lack of related laws and regulations, experts
say. Rebates and other kinds of kickbacks have been blamed partly for the rising
price of medicine and worsening medical services for patients.
Under the new measures, which are expected to go into effect next year, the
ministry said that doctors and pharmacists found to have received rebates from
drug makers or retailers could face imprisonment of up to one year or a fine of
up to 30 million won (US$26,000).
Depending on the frequency and the amount of a rebate, they could also have their
license suspended for up to one year, compared with a two-month suspension under
current law, it added.
kokobj@yna.co.kr
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