The Ministry of Health and Welfare has decided to impose a penalty on Dong-A ST for dishing out illegal rebates twice in the past four years, the ministry said Wednesday.

The penalty will affect reducing the prices of 142 Dong-A ST drugs by an average of 3.6 percent, saving drug costs of 10.4 billion won ($9.31 million) for consumers a year, starting Aug. 1.

The ministry has decided on the penalty amount upon two criminal rebate prosecutions filed by the Seoul Central District Prosecutors Office in March 2013 and the Busan District Prosecutors’ Office in February of last year.

According to the ministry, Dong-A ST provided about 3 billion won in illegal rebates, 2.9 billion won in 2013, and 100 million won in 2016.

“We will continue to respond firmly to companies utilizing illegal rebates by reprimanding both the recipients and the providers,” a ministry official said.

Copyright © KBR Unauthorized reproduction, redistribution prohibited