Pharmaceutical Company Rebate Assistance Case | Revocation of an Administrative Disposition Against a Pharmaceutical Company for Rebates

The client who came to Daeryun's corporate attorney was a person affiliated with pharmaceutical company C.

The client received a suspension of business for several months on the grounds that some of the company's employees had engaged in illegal rebate conduct.

However, the client expressed a sense of injustice, stating that a rather heavy disposition had been imposed for a problem that arose from the illegal conduct of an individual employee.

Accordingly, in order to obtain a decision revoking the suspension of business, the client came to Daeryun's 🔗corporate attorney, who has handled numerous rebate cases, and requested assistance.

A business operator or medical professional who provides or receives an unlawful rebate is punished under both the Medical Service Act and the Pharmaceutical Affairs Act under the dual-punishment system for rebates.

▶ Pharmaceutical Affairs Act Article 76 (Revocation of License, Suspension of Business, etc.)

The corporate attorney challenged the timing of the disposition, emphasizing that the administrative agency’s disposition was made an excessively long time after the incident occurred.

Under Article 23(1) of the Framework Act on Administrative Matters, it is expressly provided that a sanction disposition may not be imposed on a violation once 5 years have passed from the date the violation ended

On the basis of this statutory provision, the attorney argued that the matter could be regarded as an abuse of the administrative agency’s discretionary power.

The corporate attorney emphasized that the illegal rebate conduct in this case arose from the personal unlawful acts of some employees.

In addition, considering that the rebate amount provided by the employees was not large and that corrective measures were taken within the company, the corporate attorney argued that the administrative disposition was unjust.

The corporate attorney provided legal advisory to prevent similar legal disputes from arising in the future.

The attorney prepared internal regulations and policy improvement proposals to minimize the legal risks related to rebates, and presented measures to strengthen employee education on the relevant statutes.

The attorney also provided preemptive legal review and procedural advice to reduce future friction with administrative agencies, supporting the client in maintaining long-term stability.

The above case was an example of a pharmaceutical company that received an administrative disposition for illegal rebate conduct but, with the assistance of a corporate attorney, had the disposition revoked.

As such, if you are implicated in an illegal rebate, the impact on a company's trust and financial stability is significant, so accurate analysis and a strategic response by an experienced specialized attorney are needed.

Daeryun Law Firm has numerous specialized attorneys with broad expertise in the corporate legal field and presents systematic and strategic solutions even for complex legal issues.

In addition, through a system that allows rapid collaboration with experts in various fields, such as accountants and tax accountants, we provide more refined advice and assistance.

If you are implicated in a pharmaceutical company rebate case and need assistance and legal advice, please request assistance at any time through the 🔗legal consultation reservation.