The Korea Venture Business Association expressed deep regret that a revision to the Pharmaceutical Affairs Act, dubbed the "Dr. Now prevention bill," passed the National Assembly's plenary session. It argued that the amendment, which restricts telemedicine platforms from entering the pharmaceutical wholesale business, could stifle innovation by startups in new industries.
The Korea Venture Business Association issued a statement on the 20th, saying, "We are seriously concerned that, citing worries about rebates and inducing or soliciting patients—matters that can be sufficiently regulated under the existing legal framework—the legislature chose the strongest form of prohibitory legislation by fundamentally banning the business model of operating a wholesale business itself."
Regarding the legal revision, the Korea Venture Business Association said, "A small innovation by startups has once again been frustrated by entry regulations in new industries and the vested interests of professional associations," adding, "Our society should use this as an opportunity to reflect on how it will accept and regulate innovation in new industries and venture companies."
According to the Korea Venture Business Association, there are currently about 40,000 venture companies in Korea, responsible for roughly 820,000 jobs. The association said, "Venture companies are driving economic growth and employment," adding, "To achieve the government's stated goal of becoming one of the 'four major venture powerhouses' and an era of 4 trillion won in annual venture investment, the fundamental principles for applying industrial regulations must first be overhauled."
It then asked, "In an environment where business models commonplace in advanced countries are uniquely banned in Korea and regulations are instead being tightened, how can we encourage young people to start businesses?"
The Korea Venture Business Association said, "To ensure this bill does not remain another 'innovation-stifling law' following the past 'Tada ban law,' the subsequent institutional design must fully reflect innovation and consumer benefits," adding, "In particular, when preparing subordinate regulations under the Medical Service Act, the system should be designed so as not to undermine the effectiveness of telemedicine and the public's access to medical care." It added, "Discussions on expanding medicine delivery should likewise focus on resolving inconveniences patients actually experience and information asymmetry that occurs in the process of using pharmaceuticals."