Kim Mi-ae: "There are 1,000 people involved in the Koryo Pharmaceutical rebate scandal... but no administrative sanctions for rebates this year"

Administrative Sanctions Show Continuous Decline Over 5 Years
Majority of 208 Cases Suspended for 6 Months or Less
Passive Investigation and Punishment Sustain the Practice

Amid the police's full-scale expansion of investigations, including the indictment of 82 doctors related to illegal rebate practices in the medical community, it has been revealed that not a single doctor has been administratively disciplined for rebates this year. Critics point out that due to relatively passive investigations and punishments so far, these covert practices have not been eradicated.

On the 29th, at the 4th meeting of the Task Force to Resolve the Pediatric and Adolescent Medical Crisis held at the National Assembly, Kim Mi-ae, the TF chairperson, is speaking. Photo by Kim Hyun-min kimhyun81@

According to data received on the 26th by Kim Mi-ae, a member of the National Assembly's Health and Welfare Committee from the People Power Party, from the Ministry of Health and Welfare, the number of doctors administratively disciplined for rebates has steadily decreased from 69 in 2019 to 66 in 2020, 39 in 2021, and 26 in 2022. Last year, there were only 8 in total, and up to May of this year, there was not a single case. This trend is criticized as being contrary to the reality of the medical community recently revealed through police investigations. The police are investigating a total of 32 medical rebate cases, including 19 cases recently referred by the Ministry of Health and Welfare. Among these, in the Koryo Pharmaceutical case alone, it was found that more than 1,000 doctors received economic benefits beyond the scope permitted by current law.

From 2019 to May of this year, a total of 208 doctors were caught for rebates, but only 22 doctors (10.6%) had their licenses revoked. There were 139 suspensions and 47 warnings. Among the 139 suspended, 72 doctors (51.8%) received suspensions of six months or less depending on the amount received. The maximum suspension period is 12 months. Among the doctors whose licenses were revoked, 7 applied for reissuance last year, and 2 were approved, with about 20% of applicants each year regaining their licenses. This is the background for calls to strengthen the level of disciplinary measures, which are currently seen as 'light penalties.'

The Ministry of Health and Welfare states that it mechanically imposes administrative sanctions upon receiving notifications from the prosecution after court rulings are finalized, so policy changes do not affect the scale of administrative sanctions. Ultimately, analyses suggest that the active will of investigative agencies and organic cooperation among related ministries are key to eradicating covert practices. Lawmaker Kim said, "Illegal rebates adversely affect a sound pharmaceutical market and healthcare system," adding, "Health authorities must root out pharmaceutical companies' attempts to boost performance through unfair sales practices."