Police investigating allegations that Daewoong Pharmaceutical sales staff engaged in illegal rebate (in return for drug adoption) sales have launched another round of compulsory investigation.
According to police, the Gyeonggi Nambu Provincial Police Agency's mobile investigation unit conducted searches and seizures at seven locations, including a Daewoong Pharmaceutical subsidiary and related firms, starting at 9:30 a.m. on the 30th.
The charge stated in the search and seizure warrant issued by the court was reportedly a violation of the Pharmaceutical Affairs Act.
Earlier, a whistleblower believed to be a Daewoong Pharmaceutical official filed a public-interest report with the Anti-Corruption and Civil Rights Commission in Apr. last year, submitting reports containing two years of the company's rebate sales records from Jan. 2022 to Dec. 2023.
Police received the public-interest report from the commission in Aug. last year and investigated, then closed the case without booking anyone in 4th after determining there was no charge; however, after claims emerged that the probe had been insufficient, police decided to reinvestigate and in Jun. transferred the case, which had been handled by the Seongnam Jungwon Police Station, to the higher body, the Gyeonggi Nambu Provincial Police Agency.
A police official said, "We cannot disclose details as the matter is under investigation."
Earlier, Daewoong Pharmaceutical said, "The mentioned "report" is not an official document but an activity memo written by a sales representative in the CRM (customer relationship management) system," adding, "They excerpted memos in which some employees exaggerated their own performance and improperly linked them to lawful academic activities," denying the illegal rebate allegations.
The company said, "Regarding our sponsorship of academic societies and product briefings, it was an exaggeration that misrepresented our lawful activities due to insufficient understanding of relevant laws and systems."