240 Mil. Won Fine for Providing 800 Mil. in Rebate
The Fair Trade Commission (FTC) said on Feb. 5 that it will impose a correction order and a fine of 240 million won on JW Shinyak for providing unfair rebates to hospitals and clinics.
JW Shinyak is a mid-sized drugmaker and an affiliate of JW Group(JW Pharm). The company posted 78.8 billion won in sales in 2017.
JW Shinkyak provided about 800 million won worth of unfair rebates to 90 hospitals and clinics across the country from January 2014 to April 2017 to increase sales of its anti-obesity treatment.
According to the FTC, the hospitals and clinics prescribed certain amounts of the treatment under agreements with the JW Shinkyak and received cash and goods amounting to 20 percent to 35 percent of the prescribed amounts.
The FTC imposed the correction order and fine on JW Shinyak for the illegal acts by applying Article 23-1-3 of the Monopoly Regulation and Fair Trade Act.