AHN-GOOK PHARMACEUTICAL Rebate Trial... "Implied Intent Recognized"

[Financial News] Current and former executives of AHN-GOOK PHARMACEUTICAL have been brought to trial on charges of providing large-scale rebates to medical professionals in order to promote pharmaceutical sales. While some intent was acknowledged for certain charges, disputes continued regarding the specific amounts and the extent of involvement.
On the 17th, the Seoul Western District Court’s 9th Criminal Division (Presiding Judge Kim Min-jeong) held the third hearing for Auh Jin, Chairman of AHN-GOOK PHARMACEUTICAL, and three others indicted on charges including bribery.
Due to a change in the judicial panel, the hearing was conducted as a renewal of the trial proceedings. The court informed the defendants of their right to remain silent and explained that their statements could be used as evidence of guilt. Both the Prosecution Service and the defense agreed on the method of evidence examination.
According to the Prosecution Service, the CEO and executives of AHN-GOOK PHARMACEUTICAL provided rebates in the form of cash, entertainment, and goods to medical professionals at medical institutions nationwide from 2012 to August 2018 to boost pharmaceutical sales. The Prosecution Service stated that approximately 5.6 billion KRW in cash, about 760 million KRW in cash for healthcare workers, and goods worth about 2.5 billion KRW were provided, totaling around 8.9 billion KRW in economic benefits. It was also explained that some of these benefits were considered bribes given to public officials, such as Public Health Center staff, in connection with their duties.
The defense contested most of the charges but acknowledged certain facts. Auh Jin’s side admitted to implied intent regarding rebates to private physicians but maintained that he was not involved in specific amounts or individual execution processes.
The former executive director of AHN-GOOK PHARMACEUTICAL, who was also indicted, admitted to providing rebates but disputed the amounts calculated by the Prosecution Service. Another defendant, identified as Mr. Jeong, acknowledged involvement in cash payments under Auh Jin’s instructions but claimed no involvement in the specific amounts or execution of the rebates.
The court accepted the defense’s request and agreed to allow oral arguments in the form of presentations at future hearings. The trial will continue on March 30 next year.
In addition to this indictment, Auh Jin was sentenced to eight months in prison by the Seoul Western District Court for illegal clinical trials and was released last October. Earlier this month, he assumed the chairmanship of AHN-GOOK PHARMACEUTICAL despite ongoing legal risks.
Meanwhile, on the same day in the same courtroom, a trial was also held for four doctors indicted for violating the Medical Service Act in connection with receiving rebates from AHN-GOOK PHARMACEUTICAL. All defendants denied the charges, and the court decided to hold an additional hearing next March after reviewing the admissibility of evidence.
425_sama@fnnews.com Choi Seung-han Reporter