Prosecutors Request Arrest Warrant for Kyungbo Pharmaceutical Executive Over 'Rebate Suspicion'

The prosecution has requested an arrest warrant for an executive of Kyungbo Pharmaceutical suspected of giving rebates worth hundreds of billions of won to hospitals.

According to the legal community on the 27th, the Food and Drug Crime Investigation Division of the Seoul Western District Prosecutors' Office (Chief Prosecutor Song Myeong-seop) recently requested an arrest warrant for Mr. A, the head of finance at Kyungbo Pharmaceutical, on charges including embezzlement.

The case began after whistleblower Mr. A reported suspicions of rebates at Kyungbo Pharmaceutical to the Anti-Corruption and Civil Rights Commission. Mr. A claimed that Kyungbo Pharmaceutical provided illegal rebates by returning more than 20% of the drug price in cash to hundreds of hospitals and clinics nationwide from 2013 to 2021.

The prosecution received the case from the Anti-Corruption and Civil Rights Commission and is currently investigating. In December of last year, they conducted a search and seizure at Kyungbo Pharmaceutical’s headquarters in Seodaemun-gu, Seoul, and in January, they raided offices located in the metropolitan area.