Cheap Materials

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The police have found that a medical equipment company provided over 10 billion won in rebates to dental clinics. The firm used a new rebate method by providing dental materials for cheaper prices. But the damage was inflicted on none other than the patients.​

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This firm supplies medical materials such as implants to dental clinics. It supplied dental implants and alloys for six million won instead of the usual price of ten million won. The firm provided a four-million-won discount in a bid to increase its market share and help clinics reap profits. In fact, the sales of the products in question surged 50 percent in two years. Police believe that the firm has provided over 10 billion won worth in rebates to dental clinics over the past three years. To cover losses stemming from the rebates, the firm raised the price of dental implants by 50,000 won. It capitalized on the fact that clinics do not mind buying implants for a higher price because implants for the elderly are covered by the national health insurance. Police say that as a result of the rebates, patients who received dental implants and insurance premium payers have sustained damages. The firm has denied any wrongdoing. Police have indicted 38 people including the CEO and executives of the firm for violating the Medical Devices Act. Forty-three dentists who had transactions with the firm were also indicted for violating the Medical Act.