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Appeals court orders Dongwha Pharm to pay penalty for illegal rebates

All News 16:09 April 07, 2016

SEOUL, April 7 (Yonhap) -- An appeals court on Thursday dismissed a suit filed by Dongwha Pharm Co., one of South Korea's major drug makers, asking for the cancellation of fines slapped on the company for giving billions of won in kickbacks to local hospitals.

The drug maker filed the suit against the Fair Trade Commission (FTC) after it handed down a fine of 898 million won (US$780,000) to Dongwha Pharma in 2014 for bribing over 900 hospitals from 2010 to 2011.

It was the largest rebate scandal since a law regulating such practices first took effect in December 2008.

Dongwha Pharm said out of 13 types of drugs it was accused of promoting by rebates, only five were relevant.

The Seoul High Court, however, said the commission's decision was legitimate, citing evidence and the result of a related criminal case.

In September 2015, nine doctors who received bribes from Dongwha Pharm received monetary penalties ranging from 3 million to 10 million won.


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