1. On March 26, 2012, the Defendant’s order to pay penalty surcharges listed in attached Form 1, which was issued against the Plaintiff by resolution B, shall be revoked.

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Details of the disposition

Plaintiff

The status of the Plaintiff, the Doksan medicine (hereinafter referred to as “stock company”) (hereinafter referred to as “company trade name”), the Cheongsan medicine, the king medicine, the south medicine, the postal administration medicine, and the ASEAN medicine are entrepreneurs engaging in the wholesale business of medicines.

(2) The following is classified as the following: (a) the distribution channel of drugs and the distribution channel of drugs in Korea; and (b) the transaction between the wholesaler and the wholesaler in the transaction as defined below is generally referred to as the “marketing transaction.”

Before the amendment of the Pharmaceutical Affairs Act on May 9, 2012, Article 62(1)7 of the former Enforcement Rule of the Pharmaceutical Affairs Act (amended by Ordinance of the Ministry of Health and Welfare No. 123, May 9, 2012) [Article 57(1)7 of the former Enforcement Rule of the Pharmaceutical Affairs Act (amended by Ordinance of the Ministry of Health and Welfare No. 434, Jan. 15, 2008)] provides drugs to a general hospital (amended by Ordinance of the Ministry of Health and Welfare No. 434, Jan. 15, 2008) under the Medical Service Act, when supplying drugs to a pharmaceutical wholesaler (a hospital with at least 100 sickbeds) under the same Act, the pharmaceutical wholesaler was required to supply drugs only through the drug wholesaler, except in extenuating circumstances.

The Ulsan National University Hospital (which is a general hospital with at least 800 beds) purchased drugs through a negotiated contract with two to three drug wholesalers prior to 2004. However, since 2004, it purchased drugs through competitive bidding for drug wholesalers who meet certain requirements such as the supply performance of drugs.

Qualifications for participation in the bidding in 2006 was an enterprise which can supply medicines within 2 hours after the order of an emergency drug among pre-existing traders and drug wholesalers, and whose sales of prescription drugs in 2006 was 5 billion won or more, and participation in bidding in 2007 and 2008 are existing traders and drugs.