New Punishment Rule on Illegal Rebates

New punishment rule on illegal rebates

The law of the both-party punishment for illegal rebates which passed the national assembly previous month was promulgated at the end of May.

The new law will take effect on November 28.

Under the new law, it is banned to provide cash, products or convenience designed to promote sales that could induce doctors or pharmacists to select, prescribe certain medicines or to use medical instruments.

Medical institutions, employees in pharmacies, representatives of the medical corporation were added to the list of those who will be punished in receiving rebates.

If they violate the law, they will be sentenced to two years imprisonment or fined up to 30 million won.

However, the followings will not be considered as illegal acts of rebate: offering sample products, financially supporting conferences and clinical trials, presentations on products, discounts as results of conditions attached to payments, investigation after coming into themarket.

The health ministry has set to work preparing subordinate laws of the both-party punishment law.

It will also define the range of permissible rebates, complying with the rules for Fair Trade.