As the medical community kicked off its nationwide walkout on Tuesday, police have unveiled investigations involving doctors in rebate schemes and insurance fraud, prompting accusations of strategic timing to undermine the strike efforts.

The police on Monday announced that around 1,000 doctors are under investigation for accepting illegal rebates from Korean Drug Co.

The investigation started when a whistleblower reported such illegal actions to the Anti-Corruption & Civil Rights Commission, which led the police to conduct a search and seizure for the company's headquarter in April. The investigation has currently led the police to arrest eight company officials and 14 doctors.

"Doctors received amounts ranging from a few million to several tens of millions of won," Seoul Metropolitan Police Agency Commissioner Cho Ji-ho said during a regular meeting with the press on Monday. "These doctors came from various institutions, including major hospitals and smaller clinics."

Cho hinted at the possibility of expanding the investigation into other pharmaceutical companies, citing "structural issues" in multiple areas.

The same day, Daegu Nambu Police Station reported the arrest of a doctor, a nursing assistant, and two insurance agents for defrauding insurance companies of 1.1 billion won.

They allegedly falsified treatment records and inflated medical visits to claim excessive insurance payouts, sharing the proceeds among themselves. This scheme involved 95 patients from Jan. 2019 to Nov. 2021.

Regarding the matter, the medical community viewed these investigations as a tactic to pressure them ahead of their planned strike.

"The investigation is still in its early stages, yet they mentioned that they are investigating up to 1,000 doctors to intimidate us," a doctor told Korea Biomedical Review, asking to remain anonymous. "This seems aimed at pressuring the medical community by clinging to the issue of illegal rebates."

It's hard not to be suspicious when such information is released just one day before the planned collective action by the medical community, the doctor added.

Another physician agreed.

"Both the timing and the content of the release suggest ulterior motives," the doctor said.

The doctor stressed that he does not believe the medical community is a sanctuary that should be immune from investigations, as crimes like illegal rebates and insurance fraud must be eradicated.

"However, given the current police stance, it seems they are more intent on pressuring the medical community ahead of our collective action than on eradicating crime," she said.

The Korean Medical Association (KMA) also criticized the government's actions. KMA spokesperson Choi Anna stated that the association questions the appropriateness of these actions at this time.

"The government's threats from the start reveal its incompetence and lack of solutions, and there seems to be no intent to normalize the situation," Choi said.

The pharmaceutical industry is also on edge, fearing the investigation into Korean Drug Co.might extend to other companies and have also questioned the motive behind the investigation.

"While investigations are necessary for any wrongdoing, many question the timing of these revelations," a pharmaceutical official told Korea Biomedical Review. "There were already moves to drive things illegally from the time the medical crisis began."

Rather, due to this incident, pharmaceutical companies are now facing difficulties as they cannot visit hospitals, he added.

Health ministry reports KMA to FTC for antitrust law violation

Simultaneously, the government has reported the Korea Medical Association (KMA) to the Fair Trade Commission (FTC) for allegedly organizing the doctors' strike in violation of antitrust laws.

The Ministry of Health and Welfare submitted a complaint, arguing that the KMA, as a business association, engaged in activities that unfairly restricted competition. This could lead to fines of up to 1 billion won ($724,217) for the KMA and potential imprisonment for its leaders.

"Based on existing precedents and Supreme Court rulings, we believe the KMA's actions violate antitrust regulations," Director of Health and Medical Policy at the Ministry of Health and Welfare Jeon Byung-wang said during a Central Disaster and Safety Countermeasures Headquarters press conference on June 10.

The FTC is investigating whether the KMA compelled individual doctors to participate in the strike, which would constitute illegal coercion.

Historically, the courts have ruled differently on such matters. In 2000, the KMA's strike against a pharmaceutical reform led to its president's license being revoked due to proven coercion. However, in 2014, the Supreme Court overturned an FTC order against the KMA for a strike opposing telemedicine, citing the lack of coercion.