BML Clinic Ordered to Correct for 25 Million Won Rebate

Fair Trade Commission "First Sanction on Rebate in Inspection and Specimen Service Market"

[Asia Economy Reporter Moon Chaeseok] The Fair Trade Commission announced on the 1st that it has decided to issue a corrective order against BML Clinic for providing economic benefits worth approximately 25 million KRW to 24 hospitals and clinics from 2015 to 2018. This marks the first time that rebates in the specimen testing service market have been sanctioned.

BML Clinic induced customers of competing businesses to transact with itself by supporting equipment rental fees and company dinner expenses. It provided about 20 million KRW in rental fees for medical equipment and electronic devices necessary for specimen testing, and approximately 5 million KRW in cash under the pretext of supporting company dinners.

The specimen testing service market is characterized by consumers being unable to directly request their own tests. Because of this, the Fair Trade Commission judged that testing companies have incentives to give rebates to hospitals and clinics.

The Fair Trade Commission explained that it found BML Clinic violated the Monopoly Regulation and Fair Trade Act (Fair Trade Act) and its enforcement decree, and issued a corrective order to prevent future unfair customer inducement practices.

A Fair Trade Commission official stated, "Given the market characteristic where patients cannot directly request their own specimen tests, providing economic benefits to medical institutions is an unfair competition method that could undermine transaction order," adding, "It also has a high possibility of harming patient welfare."

The official continued, "The Fair Trade Commission plans to continue efforts to improve the rebate provision practices by requesting compliance with fair competition from specimen testing companies and related associations."

This content was produced with the assistance of AI translation services.