Police Launch Investigation into Over 1,000 Doctors over 'Goryeo Pharmaceutical Rebate Allegations'

Confirmation of Entertaining Activities Including Golf
Considering Expansion of Investigation Scope

The police have begun verifying rebate receipts for about 1,000 doctors who were targeted for entertainment in connection with the investigation into illegal rebates involving Koryo Pharmaceutical.

On the 17th, Cho Ji-ho, Commissioner of the Seoul Metropolitan Police Agency, stated at a regular press briefing, "We conducted a search and seizure targeting the pharmaceutical company and confirmed circumstances where doctors received entertainment such as golf," revealing this information.

Police officials stand in front of the headquarters of Koryo Pharmaceutical in Gangnam-gu, Seoul, where a search and seizure operation was underway on the morning of April 29. [Image source=Yonhap News]

Commissioner Cho explained, "The scale of the rebates needs to be confirmed, but it is understood that doctors received anywhere from tens of millions to hundreds of millions of Korean won. It is a matter for investigation to determine who will be booked based on the amount of money received."

He added, "Although it is regulated that doctors can receive 100,000 KRW per session at product briefings, those who received amounts exceeding this scale are subjects of the investigation." Under current medical law, providing food and beverages exceeding 100,000 KRW per day at pharmaceutical product briefings is considered a rebate.

Furthermore, Commissioner Cho mentioned that the rebate issue is viewed as a structural problem across the pharmaceutical industry and that there is consideration to expand the scope of the investigation. He said, "It is somewhat ambiguous to see this incident as a problem of just one pharmaceutical company," and added, "We are not ruling out the possibility of expanding the investigation in consultation with tax authorities."

Earlier, on the 7th of last month, the Criminal Mobile Unit of the Seoul Metropolitan Police Agency booked eight pharmaceutical company officials and 14 doctors suspected of involvement in illegal rebates by Koryo Pharmaceutical on charges including violation of the Pharmaceutical Affairs Act and breach of trust.

Based on evidence secured during a search and seizure of Koryo Pharmaceutical’s headquarters in Gangnam-gu, Seoul, in April, the police confirmed circumstances indicating that illegal rebates were exchanged over the past three to four years.