By Anadolu staff
South Korean authorities imposed an over $21 million fine on a local pharmaceutical company for providing illegal rebates to local hospitals and clinics, local media reported on Thursday.
The antitrust regulator fined JW Pharmaceutical for giving cash, gifts, and other benefits of over $4.7 million to some 1,400 hospitals and clinics across the country during the four years from 2014 to 2018, Seoul-based Yonhap News reported.
The company is also suspected of attempting to conceal such illegalities, said the regulator and sent the case to prosecutors for further probing.
According to the agency, this is the largest fine ever imposed by the regulator on any local medical firm over alleged "systematic and intensive" rebates.
"Giving unfair economic benefits to doctors will lead to market distortion, as they would choose drugs that serve their own interests, rather than those appropriate for customers," the agency said, citing the regulator.
"Such a stern punishment will contribute to the fair trade order in the drug market," it said.
However, the company said they will challenge the decision and accused the regulator of going too far in the decision compared with similar cases of other companies.
*Writing by Islamuddin Sajid