A famous pharmaceutical company known as the "kimite (medicine for nausea)" was investigated by the police over illegal rebates. According to pharmaceutical industry sources, the Seoul Metropolitan Police Agency's Intelligent Crime Investigation Unit conducted an investigation into Myungmoon Pharm on Dec. 18 on charges of offering rebates.
According to the police, Myungmoon Pharm is suspected of offering rebates amounting to 870 million won from July 2013 to December 2016 by selling its Provive products to 711 hospitals across the country at a normal amount and applying a 10 to 30 percent discount rate in the course of collecting bills.
Myungmoon Pharm is also suspected of providing Propofol injection equipment to hospitals free of charge or offering golf courses for chiefs of hospitals.
The police raided and searched for the company in March last year and secured data such as trade records from 2013 to 2017 to find out the exact facts. The reason why the illegal rebate is viewed as an organized act by the police is because when salespersons of the company reported on the spot results, the marketing team compiled a separate account and reported it to the finance team and the superior team, and confirmed that the purchasing team bought and installed medical equipment at hospitals.
Earlier, Myungmoon Pharm was caught giving cash rebate worth 3.6 billion won to 1,331 hospitals nationwide to sell its 183 medicines from January 2008 to June 2009, and the Fair Trade Commission imposed 156 million won in penalties on the company.