Political circles and the venture and startup sector called for a review of a proposed amendment to the Pharmaceutical Affairs Act that would fundamentally block the telemedicine platform Dr.Now from entering the pharmaceutical wholesaling business, saying it is "excessive prior regulation."
Lawmakers from both parties, including Kim Han-kyu of the Democratic Party of Korea and Ahn Cheol-soo of the People Power Party, who are members of the National Assembly startup study group "Unicorn Farm," held an "emergency meeting on the Pharmaceutical Affairs Act amendment" at the National Assembly on the 16th to discuss the issues and alternatives surrounding the bill. The crux of the amendment is a blanket ban on telemedicine platforms operating pharmaceutical wholesalers. As Dr.Now is effectively the only entity currently engaged in the related business, it has been called the "Dr.Now prevention law."
Kim Han-kyu said, "The discussion proceeded without sufficiently reflecting the views of the venture sector," and added, "We need a procedurally sound discussion on whether there are alternatives that can achieve the same goal with less regulation."
Ahn Cheol-soo said, "I don't see how this law is different in substance from the Tada ban law," and noted, "If innovation is blocked first based only on the possibility of side effects, the market loses the opportunity to judge." Citing that the scale of pharmaceuticals Dr.Now currently handles is limited, Ahn said, "Let the market handle it first, and if problems arise, adjust accordingly—it won't be too late."
Choi Bo-yoon of the People Power Party, who introduced a bill to amend the Medical Service Act to legalize telemedicine, said, "The key is how to balance the benefits telemedicine has provided to the public with concerns about the distribution structure," while lawmakers Jeon Yong-gi, Lee So-young, and Lee Jae-gwan urged caution, saying, "We need ex-post regulation instead of prior bans, and alternatives instead of a total blockade."
The venture and startup sector warned that the amendment could stifle innovation and investment. Choi Ji-hyung, executive director of the Korea Startup Forum, said, "Dr.Now's move into wholesaling was an attempt to solve the 'pharmacy ping-pong' problem," and added, "Even under the current legal framework, unfair practices can be punished, so a blanket ban based on mere possibilities is excessive." The Korea Venture Business Association and the Korea Venture Capital Association also expressed concern about growing investment uncertainty.
The government drew a line, saying the purpose of the amendment is not to "block specific corporations" but to "prevent conflicts of interest." Kang Jun-hyuk, director of the Pharmaceutical Policy Division at the Ministry of Health and Welfare, said, "This is a measure to preemptively block structural conflicts of interest that could arise if a telemedicine platform also engages in wholesaling," and stressed, "It is different in nature from the Tada ban law." He added that the government would also consider alternative approaches, such as providing inventory information using public data.