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Deals & Cases

Violation of the Medical Service Act

Case Assisted by a Medical Service Act Attorney | Medical Service Act Violation in Dental Advertising, Suspension of Indictment

The client who sought out a Medical Service Act attorney operated a dental clinic and came to be investigated over an issue concerning medical advertising, and accordingly requested the assistance of an attorney with extensive experience in Medical Service Act cases.

CONTENTS
  • 1. The Client Who Came to a Medical Service Act Attorney
    • - How the Medical Service Act Violation Case Arose
  • 2. The Issues in the Case Identified by the Medical Service Act Attorney
    • - Advertising of Discounts on Non-Covered Treatment Fees
    • - The Possibility of Patient Solicitation
    • - Omission of Prior Review
  • 3. The Medical Service Act Attorney's Strategy for Defending Against Punishment
    • - The Medical Law Attorney's Strategy ① | Denying Patient Solicitation
    • - The Medical Law Attorney's Strategy ② | Interpretation of the Non-Covered Treatment Fee Advertisement
    • - The Medical Law Attorney's Strategy ③ | Absence of Intent in the Omission of Prior Review
  • 4. Result of the Medical Service Act Attorney's Assistance: Suspension of Indictment
    • - Medical Advertisements Requiring Prior Review

1. The Client Who Came to a Medical Service Act Attorney

The client who came to a medical law attorney was the head of a dental clinic, who came to be investigated after a YouTube advertisement posted in the course of promoting the clinic's opening was identified as suspected of violating the Medical Service Act.

This is a case in which, through the medical law attorney's strategic response, a disposition of ‘suspension of indictment’ was obtained, so that criminal punishment could be avoided.

How the Medical Service Act Violation Case Arose

The client, who was about to open a dental clinic, entrusted a promotional video to a marketing agency.

With a limited understanding of the regulations on medical advertising, the client approved the advertisement produced by the agency without knowing that the advertising review procedure had been omitted.


The matter then began when the subsequently posted ‘implant event’ video was reported on suspicion of violating Article 56 (restrictions on medical advertising) and Article 27 (prohibition of patient solicitation) of the Medical Service Act.

The client therefore retained an attorney with extensive experience responding to violations of the Medical Service Act and prepared a defense.

Medical Service Act attorney violation of the Medical Service Act restrictions on medical advertising

2. The Issues in the Case Identified by the Medical Service Act Attorney

The medical law attorney organized the core issues of the case as follows.

① Whether the advertising included a discount on non-covered medical fees

② The possibility that it constitutes an act of inducing patients

③ Failure to carry out the prior review procedure for the advertising

To resolve these, the attorney closely analyzed the process of producing the advertising, the degree of the client's involvement, and whether there was intent.

Advertising of Discounts on Non-Covered Treatment Fees

Article 56 (2) 13 of the Medical Service Act strictly prohibits advertising that discounts or waives non-covered medical expenses.


The advertisement in this case also contained discount content, which became a problem.

The Possibility of Patient Solicitation

In addition, Article 27 of the Medical Service Act prohibits the solicitation of patients through the provision of economic benefits or the reduction of costs.

Accordingly, whether the ‘implant discount event’ advertisement posted by the client could be construed as patient solicitation was another issue.

Omission of Prior Review

Under Article 57 of the Medical Service Act, an advertisement through an online or video medium must undergo prior review.

However, the agency that had taken charge of producing the client's advertisement did not undergo the review and posted the video, so an issue of unlawful advertising arose.

3. The Medical Service Act Attorney's Strategy for Defending Against Punishment

Medical law attorney, defense strategy against punishment, matters of assistance

In order to lower the possibility of the client's charge being established, the medical law attorney devised a defense strategy on the following reasoning.

The Medical Law Attorney's Strategy ① | Denying Patient Solicitation

Relying on Supreme Court precedents and the definition under Article 27 of the Medical Service Act, the medical attorney emphasized that advertising that merely provides information does not constitute the ‘introduction, arrangement, or inducement’ of patients.

Supreme Court Decision of October 25, 2012, 2010Do6527, Holding

Considering the legislative intent and the legal interests protected by the provision prohibiting acts of inducing patients under Article 27(3) of the former Medical Service Act (before amendment by Act No. 9386 of January 30, 2009; the same shall apply hereinafter), as well as the content, history, and purpose of the provisions concerning medical advertising under Article 56 and other provisions of the former Medical Service Act,
an act of medical advertising, absent special circumstances such as it being susceptible to evaluation as equivalent to the individual types of conduct expressly prohibited by the main text of Article 27(3) of the former Medical Service Act or as significantly harming the order of the medical market, does not constitute the ‘inducement’ of patients provided for in Article 27(3) of the former Medical Service Act, and, even where such advertising is carried out through an employee of a medical practitioner or a third party requested by a medical practitioner, it is reasonable to view that this does not constitute the ‘introduction or arrangement’ of patients or the ‘instigation’ thereof

The attorney also highlighted that the advertising was for the purpose of providing medical information rather than being deceptive or inducing in nature.

The Medical Law Attorney's Strategy ② | Interpretation of the Non-Covered Treatment Fee Advertisement

The content of the advertisement posted by the client concerned an ‘implant procedure,’ which is a non-covered item for which a medical practitioner may set the price at their own discretion.

Accordingly, the attorney established that the content of the advertisement was not false or exaggerated but rather a reasonable presentation of cost, and argued that it did not constitute an unlawful advertisement.

The Medical Law Attorney's Strategy ③ | Absence of Intent in the Omission of Prior Review

Immediately after taking over the hospital, the client simply trusted the marketing company that the previous director had dealt with and commissioned the advertising, and was unaware that the review procedure had been omitted.

Accordingly, the attorney emphasized that this was not an intentional violation but mere negligence.

4. Result of the Medical Service Act Attorney's Assistance: Suspension of Indictment

Case of a suspension of indictment obtained with the assistance of a medical law attorney

As a result of the medical law attorney's detailed reasoning and explanation, the prosecution determined that the advertisement did not constitute ‘inducement of patients’ or an ‘unlawful discount advertisement.’

In addition, although the omission of the prior review procedure was acknowledged, taking into account that the client had no intent, a suspension of indictment was ultimately ordered.

As a result, the client was able to conclude the case without any criminal punishment and also avoided the risk of an administrative disposition such as revocation of the license.

Medical Advertisements Requiring Prior Review

A medical advertisement can become unlawful even through a single small phrase or a missing procedure.

Accordingly, from the advertising-planning stage, it is necessary to thoroughly review matters such as whether review is required, the lawfulness of the wording, and the possibility of inducing patients.

Daeryun LLC has numerous medical attorneys with extensive experience in cases involving violations of the Medical Service Act.

As a result, drawing on expertise across the medical, pharmaceutical, and related fields, it can provide comprehensive legal support in legal advisory and in civil, criminal, and administrative cases.

If you need to respond to a medical advertising dispute or to obtain a preliminary review, 🔗Legal Consultation Bookingplease entrust your case through the foregoing.

This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.

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