"Second Tada Ban Act"... Venture Industry Strongly Opposes Pharmaceutical Affairs Act Amendment

Claims of Excessive Legislation Retroactively Banning Legal New Industries
"Conflicts with the Government's Negative Regulation Policy"
A Dangerous Precedent Where Innovative Businesses Can Be Banned at Any Time

The venture industry has strongly protested the passage of the Pharmaceutical Affairs Act amendment (known as the "Doctor Now Prevention Act") by the National Assembly's Health and Welfare Committee. Critics argue that the legislation constitutes excessive lawmaking by retroactively criminalizing legally operated platform-based pharmaceutical distribution models.

On the 24th, the Korea Venture Business Association issued a statement expressing "serious concern and firm opposition to the Doctor Now Prevention Act," stating, "This bill fundamentally prohibits pharmaceutical wholesale business by platforms and retroactively criminalizes new industries that are currently operating legally, branding innovative companies as 'illegal.' It is a prime example of excessive legislation."

The association categorized this bill as a "second Tada Ban Act," which retroactively prohibits activities that were previously legal. They argued that banning an already legally permitted business solely based on unfounded concerns-without any legal basis-violates the principles of the rule of law.

They further asserted, "All concerning acts such as rebates, collusion, and patient solicitation can already be regulated and punished under existing laws such as the Pharmaceutical Affairs Act, Fair Trade Act, and Medical Service Act. Therefore, banning a legitimate business itself constitutes double regulation, as there are already sufficient post-regulatory measures in place."

The association also claimed that the bill directly contradicts the policy direction of the Lee Jaemyung administration. The government has consistently emphasized "negative regulation" and "regulatory rationalization" to avoid hindering new attempts by ventures and startups, but this bill reflects only the interests of established players and is a typical example of positive regulation.

The association warned, "Legislation that restricts innovative companies in new industries solely due to opposition from existing stakeholders will hinder the growth of new industries and undermine trust in South Korea's regulatory innovation policies. If this bill passes, it will set another dangerous precedent where even businesses that comply with the law and are based on innovative technology and ideas can be banned at any time."

They added, "We urge the immediate halt of the retroactive prohibition of legitimate businesses and call for the consideration of alternative legislation that protects both industry and the public, instead of introducing regulations that diminish public benefit."