Pharmaceutical, Bio, and Healthcare CEOs Head to National Assembly Audit One After Another

CEOs and executives of pharmaceutical, bio, and digital healthcare companies are set to appear at the National Assembly audit hearings.

At the audits on the 12th and 13th involving the Ministry of Health and Welfare, the Ministry of Food and Drug Safety, and the Korea Disease Control and Prevention Agency, witnesses such as Won Deok-gwon, CEO of Anguk Pharm, and Yoon Jae-hoon, chairman of RP Bio, have been summoned. CEO Won was summoned as a witness over allegations of providing illegal rebates, while Chairman Yoon was named due to accusations of employee bullying and abuse of power. However, it is reported that they have submitted letters of non-attendance, so their representatives are expected to attend the hearings. Lee Dong-jin, CEO of Dongjin Pharm, is scheduled to appear regarding issues of exaggerated advertising of health functional foods and the use of personal data in marketing, and Lee Sang-il, CEO of Korea Hutex Pharm, will appear concerning violations related to Good Manufacturing Practice (GMP) standards for pharmaceuticals. Christopher Jystocks, CEO of Eli Lilly Korea (Korean branch of Eli Lilly), will be called as a reference witness regarding the hair loss treatment drug ‘Olumiant’ and diphenylcyclopropenone (DPCP).

Jeon Seung-ho, CEO of Daewoong Pharm, will appear as a witness at the Financial Supervisory Service audit under the jurisdiction of the Political Affairs Committee. The Financial Supervisory Service has launched an investigation into SK Securities over allegations that Daewoong Pharm’s management pressured SK Securities’ executives not to publish reports favorable to competitor Medytox. However, the report was officially published earlier last month, and Daewoong Pharm maintains that the allegations are groundless. A Daewoong Pharm official stated, "We have not yet received an official notification from the National Assembly," adding, "If attendance is requested, we will coordinate with the relevant National Assembly department to ensure no disruption to the audit." Regarding CEO Jeon’s attendance, the official said, "Nothing has been decided yet," withholding further comment. Previously, at the 2016 Political Affairs Committee audit, Lee Kwan-soon, then CEO of Hanmi Pharm, was summoned as a witness over allegations of delayed disclosure of the termination of a technology contract for the lung cancer drug ‘Olmutinib’.

Domestic vaccine companies were initially considered for witness summons but were ultimately excluded during final negotiations. Vaccine company CEOs such as Ahn Jae-yong of SK Bioscience, Heo Eun-cheol of GC Green Cross, and Kim Ki-chul of Boryung Biopharma were mentioned as potential witnesses regarding national vaccine procurement but were reportedly excluded in the final discussions.

Digital healthcare, including telemedicine, is also a major issue to be addressed in this audit. Representatives from digital healthcare service companies and related personnel have been named as witnesses and reference witnesses. Kim Sung-hyun, CEO of Olacare, was summoned as a witness concerning telemedicine platforms, and Jang Ji-ho, CEO of Dr. Now, was selected as a reference witness. Regarding the telemedicine pilot project, Kim Dae-won, vice president of the Korean Pharmaceutical Association, Kwon Young-hee, president of the Seoul Pharmaceutical Association, and Lee Jung-geun, vice president of the Korean Medical Association, have also been requested to appear as reference witnesses. Additionally, Ko Seung-yoon, CEO of Vibros, which operates the hospital reception and reservation service platform ‘Ddokdak,’ was summoned as a witness. Last month, Ddokdak implemented a paid subscription policy requiring a monthly fee to make hospital reservations. Choi Soo-yeon, CEO of Naver, was summoned as a witness over issues related to the leakage of personal medical information through Naver.

Meanwhile, the Welfare Committee’s audit features some unusual witnesses. Kim So-hyang, CEO of Dalkomnara Alice, which operates the ‘Wangga Tanghulu’ franchise specializing in candied fruit, was summoned as a witness. As tanghulu has recently gained popularity among younger generations, she is expected to be questioned about the issue of excessive sugar consumption among adolescents. Nam Tae-hyun, a singer and former member of the idol group ‘WINNER,’ is scheduled to appear as a reference witness regarding drug rehabilitation treatment. Nam, who was indicted without detention on charges of methamphetamine use, has previously been admitted to a rehabilitation facility for drug addiction treatment.

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