The Korea Herald

지나쌤

Doctors gets fines over massive illegal 'rebates'

By KH디지털2

Published : Jan. 26, 2015 - 16:50

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A Seoul court on Monday imposed fines up to 4 million won (US$3,700) on 90 doctors for receiving massive illegal kickbacks from the country's largest drug manufacturer, Dong-a Pharmaceutical Co.

The doctors were found guilty of accepting money or other kickbacks known in the industry as "rebates" from the drug maker in exchange for prescribing its products.

The Seoul Central District Court ordered the doctors to pay the fines ranging from 500,000 won to 4 million won and additionally forfeit up to 13.11 million won each.

"The defendants, to some degree, were aware that the money was rebates," said judge Song Young-bok in his ruling.

In 2013, prosecutors launched an investigation into drug makers and doctors for allegedly leading the illegal business practice blamed for driving up medical costs for patients.

The probe followed a complaint by the country's antitrust watchdog against several drug makers, including Dong-a Pharm, suspected of engaging in kickback-related deals.

The government earlier declared war against the long-running illegal practice in a bid to ease the financial burdens of patients and to enhance overall transparency in the medical industry. (Yonhap)