Debate over legalizing telemedicine has gained traction, spurred by President Lee Jae-myung's campaign pledge, but controversy is brewing as the ruling Democratic Party of Korea is moving to pass a bill that includes penalties for telemedicine platforms. The measure would punish both platforms and pharmacies if they connect telemedicine users with nearby pharmacies to pick up prescribed medicine.
According to the National Assembly on the 18th, the Legislation Subcommittee of the Health and Welfare Committee, which convenes that day, is set to take up an amendment to the Pharmaceutical Affairs Act proposed by Democratic Party of Korea lawmaker Kim Yoon. The bill includes a clause that completely bans telemedicine platforms from operating as pharmaceutical wholesalers. It is effectively seen as directly targeting Doctor Now, the No. 1 platform in Korea.
During the 2020 outbreak of the novel coronavirus infection (COVID-19), both telemedicine and drug delivery were temporarily allowed, enabling patients to receive consultations and prescribed medicine at home. However, when the COVID alert level was lowered in 2023, the system was shifted to a pilot program, and drug delivery was scaled back to allow only certain vulnerable groups, such as residents of islands and remote areas. Telemedicine services have been temporarily allowed for six years.
With services restricted, platform companies turned to survival on their own. Among them, Doctor Now has expanded beyond telemedicine to services such as finding pharmacies, personalized supplement subscriptions, and real-time consultations. Notably, in March last year, while drug delivery was banned, it built a pharmaceutical wholesale platform, saying it would reduce the "pharmacy merry-go-round." The structure checks pharmacy inventory to connect patients so they do not have to go from pharmacy to pharmacy with a prescription, and directly supplies necessary medicines to partner pharmacies.
However, Kim argued, "It is illegal for a platform to give priority benefits to partner pharmacies through wholesale functions," and proposed an amendment to block wholesale licenses for telemedicine platforms at the source. The rationale is that transactions between platforms and pharmacies lead to the provision of economic benefits. The amendment also includes introducing a "dual punishment for rebates," defining this as an "illegal rebate" and penalizing both the platform and the pharmacy.
The Ministry of Health and Welfare shares the intent of the bill but says it is preferable to refine related provisions together in the amendment to the Medical Service Act to legalize telemedicine. In fact, the Medical Service Act amendment currently under discussion also includes measures to regulate unfair practices by platform wholesalers, inducement to specific pharmacies, and rebates with pharmaceutical companies.
The platform industry pushed back immediately. A Doctor Now representative said, "This bill limits opportunities for telemedicine patients to conveniently have prescriptions filled near home," and added, "Patients will have to check pharmacy inventories one by one, increasing inconvenience, and it could become a 'second Tada ban law' that excessively restricts platform functions that offer a wide range of choices."
Meanwhile, the subcommittee that day is also scheduled to review the amendment to the Medical Service Act to legalize telemedicine, along with Kim's amendment to the Pharmaceutical Affairs Act. Centered on the amendment to the Medical Service Act introduced on Jul. by Democratic Party lawmaker Kwon Chil-seung, six related bills have been proposed to date.