New Law Restricts Telemedicine Platforms' Drug Distribution Roles; Prescription Delivery to Expand

The South Korean National Assembly has approved a significant amendment to the Pharmaceutical Affairs Act, commonly referred to as the 'Dr. Now Prevention Act.' This new legislation prohibits entities operating telemedicine platforms from simultaneously holding licenses as drug wholesalers. The amendment specifically targets practices where telemedicine providers might leverage their distribution channels to give preferential treatment to certain pharmacies. It also restricts transactions between drug wholesalers and telemedicine platforms that have a special relationship, such as those involving close relatives, to prevent undue influence on drug distribution.

This legislative action follows concerns that some telemedicine platforms, like Dr. Now, were engaging in wholesale drug distribution activities, leading to allegations of unfair advantages. The amendment aims to create a clearer separation between the facilitation of remote medical consultations and the business of pharmaceutical sales and distribution.

In parallel with these regulatory changes, the Ministry of Health and Welfare has announced its intention to broadly expand the delivery of prescription medications obtained through telemedicine. Previously, this service was limited to specific groups such as residents of remote islands and rural areas, long-term care recipients, individuals with disabilities, and those with infectious or rare diseases. The new policy aims to make prescription delivery accessible to all patients utilizing telemedicine services.

The legislative session also saw the passage of other related bills. An amendment to the nursing law was approved, which will enable the Minister of Health and Welfare to establish standards for the appropriate patient-to-nurse ratio in hospital-level healthcare institutions and mandate the disclosure of nurse staffing levels. Additionally, an amendment to the National Pension Act was passed, allowing for the consideration of environmental, social, and governance (ESG) factors in alternative investments made by the National Pension Service.

Finally, the revised Pharmaceutical Affairs Act includes new provisions aimed at preventing the misuse of narcotics and psychotropic drugs. Pharmacists will now be mandated to verify drug information through the Drug Utilization Review (DUR) system when dispensing these controlled substances. The DUR system is designed to identify potential contraindications, age-related restrictions, and instances of duplicate prescriptions to ensure patient safety.