Venture Business Association regrets 'Dr. Now Prevention Act,' citing concerns over stifling startup innovation

The Korea Venture Business Association has voiced deep regret following the National Assembly's passage of a bill colloquially known as the 'Dr. Now Prevention Act.' This amendment to the Pharmaceutical Affairs Act specifically limits the ability of telemedicine platforms, such as Dr. Now, to engage in the wholesale distribution of pharmaceuticals.

“

The Korea Venture Business Association expressed regret over the passage of the 'Dr. Now Prevention Act,' which restricts telemedicine platforms from entering the wholesale drug distribution business.

The association contends that this new legislation could significantly hinder innovation for startups operating in emerging industries. They argue that the existing legal framework is already robust enough to manage practices like rebate schemes and patient solicitation, which the amendment seeks to curb. The association released a statement on the 20th, asserting that these issues can be adequately governed without new restrictive measures.

“

The association argues that the amendment to the Pharmaceutical Affairs Act could stifle innovation in startups within new industries.

This legislative move comes amid ongoing discussions about the regulation of digital healthcare services in South Korea. While proponents of the bill suggest it is necessary to maintain fair competition and patient safety, critics like the Korea Venture Business Association believe it represents an overreach of regulation that could stifle the growth of promising new business models. The association's stance underscores a broader tension between established industries and innovative startups in the rapidly evolving digital health sector.

“

They claim existing legal frameworks are sufficient to regulate issues like rebates and patient inducement, which the amendment aims to address.